The Real Perks Of Having A Social Security Card Unveiled

When one starts working in the US, they will require obtaining the Social Security Number as well as pay for the social security taxes. This tax will be withheld by the employer and given to IRS (Internal Revenue Service) on a regular, frequent basis. If you are self-employed, you will be accountable to submit this tax on your own to IRS.

However, there will be an exception in case of temporary workers who got transferred by their international company having reciprocal treaty with the United States. Besides, some state and local governments have their own disability and retirement plans as well as is not associated with the system of social security. The employees of such governments do not come under the federal system of social security.

The Real Benefits of Social Security

Before discussing the benefit lets talk a little about social security. Social security is an umbrella term for the various financial perks accessible to all workers virtually from the United States Federal Government in America. The majority of the workers depend on the benefits of social security at one point in time. It can be while they cannot work and suffer disability or collect the retirement benefits or can be eligible for survivors of social security post demise of a worker.

Social Security will be administered via the SSA (Social Security Administration). They administer three key programs namely SS retirement benefits, SS survivors benefits, and SS disability benefits. The payroll tax deductions fund each of these programs which means via every employee in America. When an individual is the SS system, they will start to accumulate credits for future SS benefits. As soon as they are eligible for the perks they can apply to SSA (Social Security Administration) for receiving the same.

You can hear people saying that they are on disability which generally indicates that he/she is a disabled employee who is collecting the disability perks of Social Security. Though the maximum of the SSA programs gets funded through payroll taxes, no program will be administered by the SSA utilizing the SSI (Supplemental Security Insurance). The SSI disability perks are for those who have a disability thereby having minimal assets as well as minimal means with regards to support. To know more visit the closest social security card office.

Benefits of Social Security for Non-Immigrants, Immigrants and Non-US Citizens

For becoming a part of Social Security System, one needs to possess a lawful alien status; get permission from USCIS (US Citizenship and Immigration Services) for working in the United States along with the SNN. In fact in every county or city in the United States there is a SSA office. To get hold of the nearest office one can make the most of online SS office locator and/or calling the toll free number of SSA.

The Total Social Security Taxes and Ways of Calculating the Same

Also called the Federal Insurance Contribution Act (FICA), the social security taxes generally are withheld from one’s salary. The employer gets taxed about 7.65% that includes Medicare and Social Security. Medicare will include the health insurance program of the government offering coverage to those aged 65 and above. In fact, the tax’s social security component is 6.20% of the gross wages (the wage before making any form of a deduction) to $76,200.

With regards to the tax concerning Medicare, it is about 1.45% of every earning. The employer will require contributing an extra 7.65% for matching their contribution. For people who are self-employed, they will require paying Social Security tax which is equivalent to the employer/employee tax that is combined (15.3%) that they need to remit to IRS (Internal Revenue Service) regularly (though 50% tax deducted as the business cost).

Ways in Which Social Security Taxes gets Utilized

When it comes to the use of social security, well usually out of each dollar that is invested in the Medicare and Social Security taxes, about 69% is transferred to the trust fund which pays survivors and retirement benefits. About 19% is transferred to the trust fund which pays the Medicare benefits and about 12% is transferred to the trust fund which pays the disability perks. One’s taxes related to social security also pays to administer the social security and costs related to administration are given from trust funds of the Social Security and is below 1% of each tax dollar of social security collected. If the trust funds of social security take more cash compared to paying out every month, then the reserve funds will be provided in the United States’ Treasury bonds, which are the safest possible investment of all that accrues interest.

Often those having a green card or in case of a new immigrant for that matter they tend to get confused with the benefits of Social Security with that of the benefits of Medicare. The truth is there is no interrelation between the two. In fact, they are two distinct bodies governed by the Federal Government. When you get the benefits of social security they will receive a specific cash amount in their hand depending on their benefit. Medicare, on the contrary, offers health insurance to green card holders and immigrants that are aged 65 and above.

However, the common facet is when one works they need to pay taxes both for Medicare and Social Security alike. The underlying criteria of getting the benefits of Social Security is one requires working and paying taxes for social security in the country and that too for at least 10 long years. One’s dependents which include their kids especially under 18 years of age and their spouse will be entitled to these multiple benefits. Their relatives and parents, however, will not be categorized as dependents.

Despite having a green card, it may happen that they worked as well as paid taxes in another country. Hence as per the Social Security Administration (SSA), these people will not be eligible for the benefits of social security. In case of permanent residents in the US, green card holders and new immigrants that are neither eligible nor qualify for Medicare or domestic insurance in the US can invest in healthcare insurance of a temporary basis offering medical coverage.