68

... 1 Herald - Lantern - Dispatch 5 June '85

WILLING HANDS — Members of Ladies Auxiliary of I.ower Township Rescue Squad are ready lo pitch in on preparing luncheon held at the rescue squad headquarters in Villas e* cry third Wednesday of month. Left to right are: Anne Lewandowski. trustee; Pauline Brandon. Harriet Kerns. June Miller, president, and Alma McCauley, secretary and past president.

■T~" Jones Finishes Motor Course WILDWOOD - Pvt. Stephen L. Jones, son of James E. Jones Jr. of Philadelphia, and Gloria E. Jones of 117 W. Baker Ave. here, has completed an Army motor transport operator course at Fort Dix, N.J. He is a 1983 graduate of Wildwood High School.

Certificate of Deposit Rates... of Special Interest To You 12 to 23 MONTH CD 9.00% Effective Annual Yield On An Interest Rate Of 8.50% minimum opening deposit of 8500 compounded daily 6 MONTH CD 8.58% Effective Annual A ield On An Interest Rati- Of 8.40% minimum opening deposit of $1000 compounded semi-annually Hales nml yli-lil* qiiutiil arc a* of |iulili<alii>n dale and are subject lo change with market condition*. Federal regulation* require a • ill t* In ti I in I lnlere*l |iennll> for enrlv withdrawal from rerllflrales of depo*it liefore maturity. Certificate of de|H>«it rate* are guaranteed for the ii- rm selected. ^ ield* quoied n**unie thai the principal and inlere*l earned remain on aerount for a full year at the quoted rale. hoMcwr. the*!1 mfr* inny eliangeat rein*e*tn»enl.

riwr v - — — -

THE FIRST 1 lUTMIUL BANK I Member F.D.I. C. °* '°*** " ' Member Statewide Bancorp J

SS Earning Limit On Self -Employed 1

By DEL BROOKS Social Security Manager in Wildwood The retirement test — the limit on the amount of earnings people can have without affecting their Social Security benefits — is different for selfemployed persons. People who continue to do some work! after retirement or receive income as farmers, insurance agents, and sales persons, and other types of selfemployment should note

the differences so as to I avoid any disruption of j their monthly benefits due to overpayments. Like regular wage earners, the self-employed person is subject to the annual earnings limit, which was $6,960 in 1964 and is 17,320 in 1985 for people 65 and over. FOR PEOPLE under 65 J the 1984 limit was $5,160 and is $5,400 in 1985. There ' is no limit on earnings for those age 70 and over. Earnings over the annual limit cause the monthly benefits to be reduced $1 for each $2 of earnings over the limit. The first year of retirement is where selfemployment income is treated differently. A monthly test is usually applied during the first year a person starts receiving benefits. This permits a person to retire any time during the year and have his or her earnings count against the retirement test only for the months after retirement. FOR REGULAR wage earners, the monthly test is one-twelfth of the annual test. This means that a person may earn any amount during the year as long as he or she does not earn over the monthly limit beginning with the month in which he or she starts receiving benefits. However, because the income of the self-employed tends to be irregular — it may be received months or years after it is earned — a test of "substantial services" in the business or trade is used. During the first year of retirement, a person who receives earnings from self-employment can get a" full benefit for any month he or she doesn't perform substantial services in selfemployment. WHETHER OR not services are substantial depends on a number of factors. They include the amount of time devoted to the business or profession, including time spent planning and managing, the kind of work done, and how the work compares with what the person previously did. In general, more than 45 hours of work devoted to a business during a month constitutes substantial services. Less than 15 hours a month is never considered substantial. ANOTHER provision unique to the self-employed holds that certain selfemployment income received after the first year of retirement from work performed before retirement is not subject to the annual limit. This rule was designed to help insurance agents who receive renewal commissions after they retire, retired farmers whose leftover crops are sold in a year after they stop farming, sales people who receive deferred commissions, and persons who continue to receive income from their investment in a business or partnership. People who need additional information about the special rules affecting earnings for retired selfemployed people should call the nearest Social Security Office and ask for the leaflet, How Work Affect a Your Social Security Check.