YOUR SOCIAL SECURITY
By DAVID BROWN

The holidays are here, and that means millions of Americans will take on seasonal jobs to bring in a little extra spending money - from snow-plowing to gift-wrapping. These days it's not just college students returning home and looking to earn a little extra cash. Many of today's holiday workers are retirees.

When people who get Social Security retirement benefits consider taking on seasonal work, questions arise. And we at Social Security have a sackful of answers.

The most frequent question is whether new earnings will stop current Social Security payments, and the answer is no. If you have reached your full retirement age (currently between 65 and 66, depending on when you were born), you can make all the money you want, and it will have no effect on your Social Security benefits. If you are younger than your full retirement age all year, there will still be no effect on your monthly Social Security payment - unless you earn more than $12,480 for the year in 2006. (That amount goes up to $12,960 for 2007.) If, in fact, you do have such a generous seasonal job, your Social Security payment is only reduced $1 for every $2 you earn above the threshold amount.

Another question we get often: Do I have to pay Social Security taxes on earnings if I am already getting Social Security? Yes, you do. Whether you're 16 or 96, your employer is required by law to withhold payroll taxes.

Finally, will those extra Social Security taxes equate to higher benefits? Maybe, but probably not. Your Social Security benefit is figured based on your average monthly wage during the highest-earning years on your record. If your average monthly wage for an entire year is more than what it was before you retired, we'll refigure your benefit and give you an increase. Most seasonal workers don't get such an increase, because holiday earnings usually are not enough to raise your monthly average for the whole year. But if a raise is due, your increase will come automatically.

To learn more about holiday work and Social Security, visit our Web site at www.socialsecurity.gov or call us at 1-800-772-1213 (TTY 1-800-325-0778). You may ask for a copy of our publication, How Work Affects Your Benefits (SSA Publication No. 05-10069), or visit the online version at http://www.socialsecurity.gov/pubs/10069.html .

Mr. Brown is District Manager of the Social Security Administration's Downtown New York Office.