Q: Social Security Tax Fraud?
This makes no sense but let's say someone is 64 and trying to help their future social security. They have a failing business and process payroll for themselves every week. They pay all taxes like they are earning income, but they never cash their pay checks. They are process payroll specifically to "help" their future social security. I know, it's nuts! I am wondering is this illegal? Criminal? Civil?
A:
You are correct: It makes no sense.
Individuals cannot increase the amount of their annual or monthly Social Security benefits by creating imaginary payroll checks and not cashing them--unless they pay the payroll taxes associated with each bogus check. The Social Security Administration could care less about anyone's "take home pay." They only care about the taxes paid in.
The only way to increase benefits is by paying in the maximum amount in SS taxes for a discrete period of time. As I recall, that is about 3 or four years--but it might have changed. Anyone can go online and see the status of their Social Security account and also use the online calculator to compute an estimated benefit based upon their own personal historical contributions projected to their regular date of retirement (now age 66 for most people).
Paying in more SS taxes than the maximum required--especially after retirement--can increase the monthly benefit; but again: It requires actually paying the SS tax to Uncle Sam, not just falsely reporting a zillion dollars a week.
Stephen Arnold Black agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
