What does the term "earnings test" relate to in Social Security?

The "earnings test" refers specifically to a rule within the Social Security system that affects the benefits of individuals who claim Social Security before reaching their full retirement age. If a person earns more than a designated threshold while receiving benefits, their Social Security payments can be reduced. This rule is designed to balance the benefits provided to individuals who are still working with the overall Social Security system's sustainability. The earnings test is only applicable to individuals under the full retirement age, and it allows some level of earnings while still reducing the benefits to account for that income.

Other options pertain to different aspects of Social Security. For instance, while increasing benefits for additional work is indeed a feature of the system, it does not relate specifically to the earnings test. The tax assessment process generally involves how Social Security taxes are collected and reported, not a direct relation to the earnings test itself. Additionally, determining eligibility for additional services involves criteria beyond just income levels established by the earnings test and does not directly correlate to the reduction of benefits based on earnings.