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benefits law

Social Security

Social Security is designed, as the title suggests, to provide security. In order to protect individuals from unforeseen catastrophes, the government spreads certain risks among all members of society so that no single family bears the full burden of such occurrences.

Social Security Disability Insurance (SSDI)

Social Security Disability Insurance (SSDI) is a federal program in the United States that pays benefits to injured and disabled workers and certain members of their families if the worker is “insured,” meaning they have worked for a required amount of time and paid Social Security taxes through their work history.

Social Security tax

Social Security tax is a FICA tax on wages which provides most of the funding for Social Security. The tax is 12.4% of an employee’s wages, but the tax cost is split between the employee and employer with each paying 6.2%. This tax only applies up to a certain amount of wages called the maximum wage base which changes every year with the 2021 maximum being $142,800. This means that in 2021 no wages above $142,800 would incur Social Security taxes.

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