Social Security refers both to the taxation of employee earnings and the distribution of federal benefits under the Social Security Act of 1935.
A Closer Look at Social Security
The Social Security Act was signed into law by President Franklin D. Roosevelt on August 14, 1935, creating a foundational social insurance system in the United States. It introduced several benefit programs, including retirement income, disability insurance, and survivor benefits, for eligible individuals and their families.
These benefits are managed by the Social Security Administration (SSA), a federal agency responsible for administering and distributing payments. In order to receive Social Security benefits, individuals must apply and meet specific eligibility criteria based on work history, age, disability status, and other factors.
Social Security benefits are funded through payroll taxes collected from workers and employers. Employers, often with the help of payroll providers like Beyond, are responsible for withholding these taxes and remitting them to the IRS on behalf of their employees.