Social Security Earnings Test for State/Government Employees

If someone has a State/Government job and is not having SS withheld from their paycheck, are they still subject to the earnings test if they collect SS they earned base off their work record?

Yes, individuals with State or Government jobs who do not have Social Security (SS) withheld from their paycheck are still subject to the earnings test if they collect Social Security benefits based on their own work record. The Social Security earnings test includes all earned income, regardless of whether it is covered by Social Security. This means that both SS-covered earnings (income from jobs where SS taxes are withheld) and non-covered earnings (income from jobs where SS taxes are not withheld) are considered when applying the earnings test. If a person’s earnings exceed the annual earnings limit, their Social Security benefits may be reduced.

For example, if a person under full retirement age collects SS benefits and earns income from a state or government job, those earnings will count toward the annual earnings limit. If their earnings exceed the limit, $1 of Social Security benefits will be withheld for every $2 earned over the limit.

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