Social Security Administration (SSA) Basics
Advancing the economic security of Americans through social security
The Social Security Administration (SSA) administers many types of social programs. It is independent of the federal government and is the largest social welfare type of program in the United States. In order to qualify for these benefits, United States workers pay a portion of their annual salary to qualify for future benefits.The US Social Security Administration agency oversees the Social Security Insurance program, founded in 1973 and funded by the general US revenue. The SSA also determines eligibility for participation in the Medicare program. Other programs that the Social Security Administration manages are:
1. Old age, disability insurance and survivors benefits that provide benefits to retired or disabled workers, their spouses and children.
2. SSI program for elderly, disabled and blind individuals. SSI covers approximately seven million persons.
3. The Medicare program, which the Social Security Administration administers, even though it’s the responsibility of the Centers for Medicare and Medicaid Services. SSA has service centers and district offices that help determine eligibility and process premium payments.
Ensure workers have a Social Security number
An individual receives a Social Security number by the SSA for the purpose of tracking tax issues and were initially issued in November of 1936. In 1986, tax laws mandated that individuals over 5 years of age without Social Security numbers could not be tax dependents on tax returns. Everyone needs a social security number to get a job and to collect benefits offered by Social Security. For tax purposes, businesses require their employees have a valid Social Security card prior to the start of employment.
Try: Social Security Online details how someone can obtain a social security number and a social security card. If privacy is a concern, Privacy Rights Clearinghouse addresses common concerns about a person's social security number and privacy. As an employee, you can verify a person's Social Security information using the Social Security Number Verification Service (SSNVS).
Understand Social Security Administration (SSA) basics about future benefits
Any future claim for social security administration benefits depends on the actual amount the individual worker contributed towards Social Security through taxes. Social Security benefits replace a certain amount/percentage of earnings when a person retires, sustains a disability or dies.
Try: All working individuals receive a Social Security Statement that helps workers monitor Social Security benefits and what would happen in the event of retirement or disability. For help understanding the Social Security process and how it affects your employees, visit one of your local Social Security Administration office locations.
File social security administration forms necessary for your business
Like many government organizations, proper paperwork and organization is essential when your business works with Social Security Administration offices. Whether you need to file employee reports or disability information, following the right procedure will help save you a lot of potential headache in the future.
Try: As an employer, you can file your employee W-2 forms electronically or using paper versions. Employer W-2 Filing Instructions & Information explains what you need to know for both processes. If you submit records relating to a person’s disability, Electronic Records Express details all the information you need to know.
- To prevent the spread of identity theft when filing taxes, use tax software that is password-protected to decrease the chance that someone may hack into tax information and get an employee's social security number.
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