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In the United States, Social Security is financed through taxes taken from the employee and a percentage of the employee's wage that the employer is required to pay. That is, the employer pays the percentage in addition to that which is paid as a wage or salary to the employee.
At the start of the scheme, the percentages were rather low, and the representation to the public, in order to gain approval of the system, was that the payments would stay low and that the money would be kept in a proverbial "lock box". This led people to believe that the money would not be used for any other purpose than to pay retirement benefits that were initially promised. The stated purpose of the plan was to make sure that upon retirement, if people had not provided for themselves, they would have some minimum income.
Among the things that have happened over the years is that the government has "raided" the lock box (sometimes called a "trust fund") and replaced money with IOU's, using the funds for other purposes.
Another thing that has happened is that people are living longer and Birth Rate has slowed, such that more people collect than there are active employees paying into the system. That is contributing to the insolvency of the system. There is an unfairness inherent in this in that younger workers are taxed disproportionately to pay benefits to the elderly and therefore money is drained from them that might otherwise be applied toward their own ultimate retirement.
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∙ 12y ago
Wiki User
∙ 14y agoThe self-employed and workers in covered occupations (nearly all of them) plus the employers of the workers.
Wiki User
∙ 13y agoTeachers (in Georgia, anyway) do not pay into Social Security.
Federal Employees are exempt as well as landlords.
Wiki User
∙ 11y agoi am a poatal letter carrierand will be 56 years of age in 6years and have 35 years of service will iget a
Wiki User
∙ 13y agoThe people that have paid jobs.
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Where are the advantages of having an alarm security system?
Having an alarm security reduces the risk of one's home being broken into. Also, insurance companies will lower people's premiums if their homes have security systems installed.
What new deal law established a system of unemployment insurance and pensions for retired workers?
The Social Security Act of 1935 established the Social Security programs including old age insurance, unemployment insurance (which is paid for by employers and is not, strictly speaking, a government fund) and federally-funded public assistance programs including Aid to Dependent Children.
What is another name for the Social Security system?
FICA, the abbreviation for Federal Insurance Contribution Act, also known as Social Security. Social Security is also known as Old-Age and Survivors Insurance (OASI), although retirement and survivors' benefits are only a portion of the SSA's obligations.
What has the author Michael Gehring written?
Michael Gehring has written: 'Health and social system' -- subject(s): Health Insurance, Social security
Did the US social security system provide more comprehensive social warfare insurance than anything available in Europe at the time?
yes
How do you get my remmittance in social security system?
yes I was participated in the social security system
Does homeowners insurance normally cover the cost of installing security alarms throughout the home?
It is not likely that your policy will cover the cost of installation of a security system. Do check your policy or contact your agent. Homeowner's policies are often discounted if the home has a security system, so check on that, too, about the possible savings on your premiums.
Can Brinks Home Security install a system in a rental property?
Brinks Home Security can only be installed in homes that are owned by the person living in them. If you are interested in having a security system installed, talking with your landlord is going to be your best bet. They may not want the work done, but it may also reduce their insurance premiums.
What does the Social Security Administration do?
It administers the social welfare system within the US. It controls Social Security
Can your insurance premiums be raised in a tort liability system if you are not at fault?
Doubt it. Contact policy services for your company, or your states dept. of insurance.
Who is the secretary of social security system in the US?
Jo Anne B. Barnhart is the commissioner of the Social Security System in the US.
Payments to a worker his dependents andor survivors in the event of retirement disability or death are generally covered by the system of insurance known as?
Social Security
