Social Insurance
The Social Security System Explained
Social Security System
Social Security provides social insurance to qualified individuals based on work history, number of dependents, current employment status, age and if the person is physically able to work.
The Social Security System works by generating funding from payroll taxes levied on the wages of every working person. Taxes increase with higher income. Likewise, the employer pays in a contribution that is equal to the dollar amount that the employee must pay. You can work for yourself and still contribute and maintain your Social Security.
Social security is collected from members and is transferred to other members. Here’s how it works: younger-aged employees pay into the network via payroll tax deductions. This also applies to members with disabilities and receiving Social Security checks. Actively paying members contribute to these funds that the entitled members receive. Your income impacts your contribution. The retirement benefits that will be paid to an individual will directly correlate to the salary that member earns.
Disability benefits are: after five months of contributing to the system a member can apply to receive disability benefits. Security disability benefits are given to members who can prove their sustained injuries or suffered long-term health conditions, no matter what the age.
Survivor benefits: When a spouse dies, the surviving spouse gets the survivor’s benefits. Also, a surviving spouse caring for disabled children or minors will get benefits, too.
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