Social Security Law
Corporate & Commercial Law

Social Security Law in United States of America

Social Security Law is a legislation or set of legislations enacted to protect individuals from unanticipated calamity, misfortune or upheaval. The government is able to achieve this by spreading the financial burden of certain risks among the entire members of society in a way that no single family bears the complete burden in the case of such event.

Social Security Law

 

Social Security Law and Related Programs

Social Security Program was introduced in the United States of America in 1935 42 U.S.C 401 et seq. to provide survivors of calamity, old age, and the disability insurance benefits to workers and their families.

Social Security is different from welfare in the sense that it is paid to individuals or their families based on the strength of that person’s employment record and previous achievements in the organization.

Social Security Program in United States of America is administered by the Social Security Administration (SSA). In 1965, after the establishment of the Medicare, there is a proximate nexus between SSA and Medicare.

The original Social Security Act was signed into law by President Franklin D. Roosevelt in 1935, and the up to date version of the Act, as amended, covers several social welfare and social insurance programs.

The Act used “Social Security” in reference to Social Security Program including Federally Funded Welfare Programs and unemployment compensation which seems to be used in a more expansive sense, while the Medicare was more like as an amendment to that Act.

The Federal Old Age, Survivors and Disability Insurance (OASDI) Program pays out monthly benefits to retired people, or to families whose wage earner is deceased, and to employees unemployed as a result of bad health or accident.

Social Security Law

A worker who is desirous for protection must have been employed for a minimum period of time to qualify and must have made contributions to the program.

The Social Security Act is a federal enactment and it governs an applicant’s right to benefits; there are also State substantive laws that govern some of the family relationship issues that may bear on that right such as the validity of a marriage.

Social Security is funded principally through payroll taxes called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA).

Every legal residents working in the United States must as a matter of compulsion have an individual Social Security number, though there are a few exceptions.

Social Security is financed mainly through payroll taxes generally referred to as Federal Insurance Contributors Act Tax (FICA) or Self Employed Contributions Act Tax (SECA). Tax deposits are collected by the Internal Revenue Service (IRS) and are officially handed over to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund; these are the two Social Security Trust Funds in United States of America.

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