Social security roberts

How the Social Security How the Social Security Program WorksProgram Works

Employers deduct Social Security tax Employers deduct Social Security tax from your paycheckfrom your paycheck

Your employer matches your contributionYour employer matches your contribution

How the Social Security How the Social Security Program WorksProgram Works

• If you’re self-employed, you must pay both If you’re self-employed, you must pay both the employee’s and the employer’s sharethe employee’s and the employer’s share

• Currently, self-employed workers can Currently, self-employed workers can deduct half from their federal income taxdeduct half from their federal income tax

Your Social Security NumberYour Social Security Number

• Your Social Security number is your Your Social Security number is your permanent identification numberpermanent identification number

• The government uses it to keep track of The government uses it to keep track of your contributions and work historyyour contributions and work history

Becoming Eligible for BenefitsBecoming Eligible for Benefits

• Work creditsWork credits are measurements of how are measurements of how long a person has workedlong a person has worked

• You must earn a certain number of work You must earn a certain number of work credits in order to become eligible for credits in order to become eligible for Social Security benefitsSocial Security benefits

Becoming Eligible for BenefitsBecoming Eligible for Benefits

• You earn work credits for each year you You earn work credits for each year you work and pay Social Security taxeswork and pay Social Security taxes

Types of BenefitsTypes of Benefits

• Disability benefitsDisability benefits are paid to disabled are paid to disabled workersworkers

• A A disabled workerdisabled worker is someone who is someone who cannot work because of a physical or cannot work because of a physical or mental conditionmental condition


• The amount of disability benefits paid is The amount of disability benefits paid is based on the worker’s average earningsbased on the worker’s average earnings


Survivors’ benefitsSurvivors’ benefits are paid to the family are paid to the family of a worker who diesof a worker who dies


• Retirement benefitsRetirement benefits are paid to workers are paid to workers who retirewho retire

• Up to a certain amount, the higher your Up to a certain amount, the higher your yearly earnings, the higher your benefitsyearly earnings, the higher your benefits


• The retirement age for reduced benefits is The retirement age for reduced benefits is 6262

• The retirement age for full benefits is The retirement age for full benefits is currently 65currently 65


• MedicareMedicare is a program that provides is a program that provides health insurance benefits to people who health insurance benefits to people who need hospitalization or other medical careneed hospitalization or other medical care


The two state-run social insurance The two state-run social insurance programs are:programs are:

• unemployment insuranceunemployment insurance

• workers’ compensationworkers’ compensation


• Unemployment insuranceUnemployment insurance is a social is a social insurance program that provides insurance program that provides temporary income to workers who have temporary income to workers who have lost their jobslost their jobs


• To be eligible for unemployment To be eligible for unemployment insurance, you generally must have insurance, you generally must have worked for a certain period of time and not worked for a certain period of time and not have lost your job through your faulthave lost your job through your fault


• Workers’ compensationWorkers’ compensation benefits are benefits are paid to workers injured on the job and to paid to workers injured on the job and to dependents of workers killed on the jobdependents of workers killed on the job

• Benefits include medical care and Benefits include medical care and disability incomedisability income

The Future of Social SecurityThe Future of Social Security

• Social Security is a “hot issue” these days Social Security is a “hot issue” these days because it’s going brokebecause it’s going broke

• People are living longer, so they receive People are living longer, so they receive more benefitsmore benefits

• People are retiring earlier, so they pay less People are retiring earlier, so they pay less into the systeminto the system


• The money being paid out will exceed the The money being paid out will exceed the amount coming inamount coming in


• One possibility is to increase taxesOne possibility is to increase taxes

• Another is to cut benefitsAnother is to cut benefits

• You can do your part by being informed You can do your part by being informed and votingand voting

Social security roberts

Education

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