November 18 is getting closer and Social Security beneficiaries are worried. Congress may have to close if there is no agreement. There are many programs that rely on the federal budget and may have difficulties in sending payments.
Therefore, it is of vital importance that there is a federal budget for the next year. Bear in mind that there are about 71 million recipients who get money from Social Security or Supplemental Security Income.
Most Social Security beneficiaries are older than 62 and they may not have enough money to get by without their monthly payments. More and more Americans rely on retirement benefits to make ends meet.
May a Government shutdown affect Social Security payments?
Despite the fact that there could be a shutdown on November 18 at 12.01, seniors will continue receiving their retirement checks as usual. Therefore, if you collect your payment on November 22, there is nothing to worry about. But why?
For your information, the Social Security Administration has its own fund to make payments, therefore, it does not need the money from the federal budget to send it to seniors or those on disability benefits like SSDI.
Remember that the money the Administration gets from payroll tax goes to retiree’s checks. Employees and employers have to pay a tax worth 6.2% of their wages.
They must pay this payroll tax up to the taxable maximum in 2023. The taxable maximum so far is $160,200 in 2023, but it will become $168,600 in 2024. Once your earnings go over that amount, you do not pay more payroll taxes.
Are Social Security benefits mandatory spending?
Millions of Americans receive monthly benefits. While some get Social Security Disability Insurance or retirement benefits, others just get Supplemental Security Income.
Some Americans on a low income get Social Security and Supplemental Security Income at the same time. Therefore, the payments these benefits make are part of the Federal Government’s mandatory spending.
This is because the Social Security Act, which is the authorizing legislation requires them to send these payments. Medicare is also included here and it is also mandatory spending.
Some low-income families receive SNAP benefits, which is also mandatory spending. Thus, you should not worry about it if you collect Food Stamps. Nevertheless, if you are on WIC, you should know that it is not mandatory spending.
