Social Security Act Of 1935 Essay example

769 Words Feb 22nd, 2016 4 Pages
Social Security
There are a few programs required by law. One is social security, another is unemployment insurance, and unpaid and family medical leave. Social Security is a commonly heard of one and it is because it’s extremely important. Social Security is considered the ‘old age’, disabilities, survivor and health insurance program. It supplies insurance for each. Social security covers around 90% of employees in the United States. If an employee wants to receive their full amount at their retirement age, or they can elect to start receiving amounts of it at age 62. This benefit amount is higher depending on the employee’s history of earnings. Based off the growth of the CPI (consumer price index), payment amounts may increase each year. If a worker is earning higher wages than the maximum, it’s considered an exempt amount. Next, the social security act of 1935 incorporated a new program that had the goal of assisting people facing unemployment. This unemployment insurance provided unemployed people with payments to help them stay on their feet. The funding for this program comes from state and federal income taxes employers must pay. This person sees a reduction in their benefits. Benefits from social security are free from income taxes and state taxes in most states. Each state has a different tax on employers. This depends on the employer’s experience rating. This rating is the total of employees laid off and the cost of providing them with these unemployment…

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