Getting the credit you deserve on your Social Security report.

Since we all contribute to Social Security each pay period, we naturally assume that the funds will be there waiting for us when we need them further down the road. But what happens when the funds end up in someone else's account or don't even show up? Mistakes like this occur more often that you would think, and you become the loser in the long-run.

There's no need to panic just yet, the Social Security Administration (SSA) has implemented a system to correct these mistakes -- however you have to take on most of the detective work.

Some common mistakes include:

• Your employer filing an earnings report with an incorrect Social Security number. Your contribution would then be credited to the account with that number.
• A typing error made by SSA in entering the information to their data processing system.
• Computation errors by either SSA or your employer.
• Your employer failing to make the contribution to SSA. This usually happens in the last year of a failing business, and although your contribution could have been withheld from your check the employer never made the payment.

If you think any of these mistakes could have occurred or to check and make sure they didn't, you can request an "Earnings and Benefit Estimate Statement" from the SSA free of charge. This statement shows your Social Security earnings history and estimates how much you have paid in Social Security taxes, year by year. If you detect mistakes, it is possible to correct the errors and change your Social Security record to reflect your actual earnings.

To make changes, you need to fill out and send in a "Request for Earnings and Benefit Estimate Statement" obtained from your local Social Security office and some post offices. The SSA recommends that you verify the amounts paid in to Social Security against your old W2 forms to make sure they are consistent.

Ideally, you should request a statement every three years, and check it carefully. The SSA doesn't have to correct mistakes older than three years, so it is a good idea to check periodically.

Your statement is a good tool for learning how Social Security operates, and knowing your earnings is another good way of planning for a strong financial future.

Return to Financial page.

Return to Reference page.