In 1935, the Social Security Act, a federal benefits programme, was created in the United States to help people pay their bills after they retire or become disabled. This was done to ease the everyday worries of many people. Social Security is a programme that helps people who are sick, old, out of work, or who have lost a spouse or child. The purpose of the benefits is to give financial help to U.S. citizens who fit into the categories listed in the program's rules.
The US social security system started with the Social Security Act of 1935. The system helps people who have paid into the social security trust fund for at least 10 years and are now retired. It also gives benefits to the employee's family in case the worker dies. There are also benefits for people who are sick or out of work.
To be eligible, a person must pay the required amount into the Social Security Trust Funds every month through payroll taxes. The Federal Insurance Contributions Act, or FICA, says that the first $94,200 a worker makes in a year is taxed at a rate of 12.4%. Half of this amount, or 6.2%, is paid by the employer, and the other 6.2% is taken out of the employee's pay. Give the money to the government. People who work for themselves have to pay the full 12.4 percent. The social security system is paid for with this amount.
The system is set up so that people who pay into it for ten years will get the most out of it. The scheme has a credit system, and you can only earn a maximum of four credits per year. This means that no matter how much you earn and how much you put into the fund, you will always get four credits.
The amount of your monthly Social Security check after you retire would be based on the 35 years when you made the most money. To start getting your social security benefits, you need to fill out an application. A few months before your retirement date would be the best time to do this.
Social Security tries to give people who are retired a set amount of money to cover their basic needs. It is a kind of insurance for retired people that helps them deal with money problems after they retire.
It is a type of insurance that pays for the employee's spouse and children if the employee dies. If the spouse is between the ages of 62 and 65, 70–99% of the benefits are paid. Parents who need help and children under 18 who are not married can also get the benefits.
People with disabilities that keep them from working can also get help from the social security system. Physical and mental disabilities are both covered, and the money starts coming in five months after the person shows the authorities that they are disabled.
People who are out of work because of things they couldn't change can get unemployment benefits through the social security system. The goal of the programme is to help U.S. citizens with money when they need it most.
