Workers past full retirement age keep full benefits on any wage income but remain subject to 7.65% payroll tax.
Workers who reach full retirement age can earn unlimited wages without losing Social Security benefits, yet still pay a 7.65% FICA payroll tax. On $100,000 in earnings, this amounts to $7,650 in taxes, split between $6,200 for Social Security and $1,450 for Medicare.
The rule applies regardless of age or benefit status, contrasting with pre-retirement earnings limits that reduce benefits. If new wages replace a lower year in a worker’s top 35 earnings years, Social Security recalculates benefits, potentially increasing monthly payouts.
Despite receiving benefits, retirees like a 68-year-old construction worker continue paying payroll taxes, creating a dual transaction with the government.