These functions return the Exempt Amounts Under the Earnings Test. The retirement earnings test applies only to people below normal retirement age (NRA). Social Security withholds benefits if a person’s earnings exceed a certain level, called a retirement earnings test exempt amount, and if the person is under the SSNRA. One of two different exempt amounts apply:
· A “lower amount” in years before the year of attainment of SSNRA. $1 in benefits is withheld for every $2 of earnings in excess of the lower exempt amount.
· A “higher amount” in the year of attainment of SSNRA. $1 in benefits is withheld for every $3 of earnings in excess of the higher exempt amount.
Both functions share the same syntax:
·
SSExemptLow returns the “lower amount”.
·
SSExemptHigh returns the “higher amount”.
Bend points are used in the
formula to calculate the Social Security Primary Insurance Amount (PIA). The
exempt amounts are determined each year based on changes in the National
Average Wage Index.
SSExemptLow and SSExemptHigh for
year 𝑥 are based on the
following formulas:
|
For
years 1975 through 1993 the amounts are published in a historical table.
For years 1975 through 2001 the amounts are published in a historical table. If
SSCOLA = 0, then use last year's amount. If the amount so determined is not a multiple of
$10, it is rounded to the nearest multiple of $10. Not less than the amount
for the prior year. |
More information can be
found at the Social Security
web site.
Syntax
SSExemptLow (DeterminationYear, [LawYear],
[WageInflation])
SSExemptHigh (DeterminationYear, [LawYear],
[WageInflation])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number. If the DeterminationYear is after the LawYear, this
is a projected calculation based on the WageInflation assumption. |
|
LawYear |
A
4 digit number. Optional;
default = DeterminationYear |
|
WageInflation |
The
assumed rate of increase in the National Average Wage. This
is used only for a projected calculation. Optional:
default = 0% |