On the social security site, it says the COLA 2007 will increase 3.3%. Does this mean we are going to be paying an average of 3.3% more per paycheck? If I got a 3% raise for my annual review, does this mean they just raised my pay for the cost of living adjustment and it really won't make a difference?
I am going to go in and negotiate a raise soon and was hoping I could use this as an argument. My raise was supposed to be based on performance and I don't think they were fair in just giving 3% if our cost of living is going up by that much anyway.
If I am misunderstanding the COLA, please explain it to me.
2006-12-01 05:18:54 · 4 answers · asked by Nicky G 2 in Business & Finance ➔ Taxes ➔ United States
The cost of living adjustment for those individuals receiving social security benefits will be increasing 3.3%. This means they will receive that percentage increase in the monthly amount they receive.
The percentage of withholding from your salary will remain at 7.65% however the wage base for social security tax withholding will increase from the $94,200 to about $96,000 of salary.
You are absolutely correct in that the raise they gave you didn't equal the increase in the cost of living for 2006. You certainly didn't receive a performance increase. By not at least keeping up with the cost of living you are just getting into a situation where your salary will result in less and less buying power each year.
You might also want to check out the department of labor web site to see if they list the cost of living adjustment there. They publish it each month in the federal record.
I say look there because the social security adjustment usually doesn't reflect the full cost of living increase each year.
2006-12-01 05:30:31 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
If you're not drawing Social Security you don't get a 3.3% raise and no, you won't pay an additional 3.3%. The only way you could pay more is if the government raises the SSI rates. So, you will make 3% more before taxes. 3% raise is pretty common these days for non management personnel. Some people are giving back previous raises.
2006-12-01 05:31:43 · answer #2 · answered by delhipops24 3 · 0⤊ 0⤋
they way it looks, sounds like they are just keeping up.
so, really, a raise in pay, but no increase in wealth.
2006-12-01 05:22:51 · answer #3 · answered by Chrispy 3 · 0⤊ 0⤋
20016
2016-01-04 04:05:12 · answer #4 · answered by Ivars 1 · 0⤊ 0⤋