Is Payroll Tax Withheld For Work After Retirement?

Q:  I am retired, age 67, and working the harvest for a farmer. Does he have to take out Social Security tax from my pay even though I receive Social Security? How does this affect me in the future? 

A: Yes. You pay Social Security and Medicare taxes on work or self-employment earnings, regardless of age or whether already receiving Social Security benefits.  

Your new earnings can increase future benefits if they are higher than the earnings in a year already used to compute your retirement amount. If not higher, new wages will not change your existing amount.   

Work records of everyone receiving Social Security benefits are automatically reviewed each year that new earnings are posted to their record.