In 1930s, the United States Government started Social Security tax upon employers of the organizations and their employees. It refers to the disability, survivors and old-age insurance program. Social Security Act (1935) encompasses numerous social insurance and social welfare programs. The better known programs includes : – Supplementary Security Income, State Children’s Health Insurance Program, Health Insurance for aged and disabled, Temporary Assistance for Needy Families, Unemployment benefits, etc. If you are an employee, 6.2% of your wages is deducted and your employer deposits the deduction, along with its 6.2% duplicate share, with the government for the Social Security programs. 15,20,25,10,
If you work as an employee in the United States, you need to pay social security taxes. Your payments of social security taxes will contribute to your coverage under the U.S. social security system.
Social security coverage gives medical insurance (Medicare) benefits as well as retirement benefits to individuals who meet definite eligibility requirements. Your employer subtracts these taxes from each wage payment.
The Social Security tax goes straight to the Social Security trust funds and is used to pay for Social Security disability benefits, benefits for widows and widowers, and retirement benefits. The Social Security tax is a tax applicable to wages related to labor. Social Security has special significance for Hispanic Americans. In fact, research suggests that Hispanics gain more advantage from the Social Security system than does the rest of the population.