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Michael is employed full time and earns a salary of $120,000 per year, paid equally per...

Michael is employed full time and earns a salary of $120,000 per year, paid equally per month at $10,000 per month. In February of this year he is involved in a serious car accident and does not work for the remainder of the year, but collects disability insurance from his employer's disability plan. He is paid his $10,000 monthly salary for both Jan and Feb. How many quarters of coverage for the year will Michael receive under Social Security?

a. 4

b. 2/3

c. 1

d. 0

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Answer #1

The Quarter of Coverage generally means the Three month Calender period It is also called social security credit One must earn 1410$ per quarter

For receiving quarter of coverage benfit one need to be fully insured.

In this case michael is fully secured and met with an accident in the month of February , since his age and credits is not given in question we may assume that he is eligible

For earning 4 credits one must have earn 4880$ ans this condition is satisfied therefore Michael will receive 4 quarter of coverage or credits under social security

Hence, the correct answer is a. 4

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