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Article #220: Introduction To Social Security

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






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