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Provisions Affecting Coverage of Employment or Earnings

These provisions extend or reduce the categories of workers or the amount of earnings covered under the Social Security system. We provide a summary list of all options (printer-friendly PDF version) in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2016 Trustees Report.

Choose the type of estimates (summary or detailed) from the list of provisions.

Number Table and graph selection
F1 Starting in 2017, cover newly hired State and local government employees.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memoranda containing this or a similar provision:
F2 Starting in 2017, exempt individuals with more than 180 quarters of coverage from the OASDI payroll tax. Earnings exempted from OASDI payroll tax would not be used in computing benefits.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this or a similar provision:
F3 Expand covered earnings to include employer and employee premiums for employer-sponsored group health insurance (ESI). Starting in 2020, phase out the OASDI payroll tax exclusion for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in 2020, with amounts above that subject to the payroll tax. Reduce the exclusion level each year by 10 percent of the 2020 exclusion level until fully eliminated in 2030. Eliminate the excise tax on ESI premiums scheduled to begin in 2020.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this or a similar provision:
F4 Expand covered earnings to include contributions to voluntary salary reduction plans (such as Cafeteria 125 plans and Flexible Spending Accounts). Starting in 2017, subject these contributions to the OASDI payroll tax, making the payroll tax treatment of these contributions like 401(k) contributions.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this or a similar provision:
F5 Tax Reform for Business: Establish a value added tax of 3.0 percent for 2018 and 6.5 percent for 2019 and later. Starting in 2018, reduce the corporate income tax rate from 35 to 27 percent.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this or a similar provision:
F6 Apply a 6.2 percent tax on investment income as defined in the Affordable Care Act (ACA), with unindexed thresholds as in the ACA ($200,000 for single filer, $250,000 for married filing jointly), starting in 2018. Proceeds go to the OASDI Trust Fund.
Summary measures and graphs (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this or a similar provision:

Above provisions
Summary measures
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Last reviewed or modified August 30, 2016