| In order to address the routine concerns of | | | | maximum of four credits per year. This means |
| many, regarding the payment of bills | | | | that irrespective of the higher limit of your |
| post-retirement or disability, a federal | | | | actual earnings and consequently the quantum |
| benefits program was designed in the United | | | | of your contribution to the fund, your |
| States, in 1935, known as the Social | | | | earnings would entitle you to receive four |
| Securities Act. The program known as the | | | | credits. |
| social security program provides disability, | | | | |
| retirement, unemployment and survivor | | | | The amount of the monthly social security |
| benefits and Medicare. The benefits offered | | | | check that you would receive after retirement |
| aim at providing financial support to the | | | | would be calculated on the basis of your 35 |
| citizens of the U.S., who fall under the | | | | highest income-generating years. You need to |
| categories specified within the paradigms of | | | | apply, to start receiving you social security |
| the program. | | | | benefits. The best time to do this would be a |
| | | | few months before your actual retirement |
| The Social Security Act of 1935 introduced | | | | date. |
| the social security system in the US. The | | | | |
| system caters to the financial needs of the | | | | The social security program attempts to pay |
| retired citizens, who have contributed to the | | | | the retired citizens a pre-determined sum of |
| social security trust fund for at least 10 | | | | money, to cover their basic needs. It works |
| years. It also provides benefits to the | | | | as a kind of insurance for the retired |
| survivors, in event of the employees death. | | | | people, helping them to cope with financial |
| The other benefits offered cover disability | | | | difficulties, post-retirement. |
| and unemployment. | | | | |
| | | | It is a form of insurance that covers the |
| It is essential for the person to make the | | | | surviving spouse and children, in case of the |
| regular required contribution to the Social | | | | employees death. If the spouse is between 62 |
| Security Trust Funds through the payroll | | | | to 65 years, 70 to 99 percent of the benefits |
| taxes, to be eligible. By virtue of the | | | | are payable. Dependent parents and unmarried |
| provisions of the Federal Insurance | | | | children under 18 years are entitled to |
| Contributions Act or FICA, every workers | | | | receive the benefits too. |
| income is subject to a tax payment of 12.4% | | | | |
| on the first $94,200 earned during the year. | | | | Disability that prevents employment |
| Half of this amount or 6.2% is paid by the | | | | opportunity is also considered for benefits |
| employer, while the other 6.2% is deducted | | | | under the social security system. Physical |
| from the salary of the employee. The amount | | | | and mental disabilities are also covered and |
| is given to the government. Self-employed | | | | the payment starts five months after proving |
| people are responsible for paying the full | | | | the disability to the authorities. |
| 12.4%. This amount is used fund the social | | | | |
| security system. | | | | Under the social security system, |
| | | | unemployment benefits are available to those |
| The system has been designed to benefit those | | | | whose unemployment is due to circumstances |
| who make the necessary contributions for a | | | | beyond their control. The program is designed |
| period of ten years. There is a credit system | | | | to provide financial relief to the citizens |
| incorporated in the scheme and you can earn a | | | | of the U.S. at crucial times. |