Social Security (United States) facts for kids
In the United States, Social Security is the term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program. That program is run by the Social Security Administration. The original Social Security Act was signed into law by President Franklin D. Roosevelt in 1935. The current version of the Act, as amended, involves many social welfare and social insurance programs.
Social Security gets its money through payroll taxes. Those taxes are called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA). Tax deposits are collected by the Internal Revenue Service (IRS). Almost all salaried income, up to an certain amount set by law (see tax rate table below), is taxed by the Social Security payroll tax. All income over the set amount is not taxed. In 2019, the maximum amount of taxable money is $132,900.
In 2017, Social Security spent $806.7 billion for OASDI and $145.8 billion for DI.
History
| Historical Social Security Tax Rates Maximum Salary FICA or SECA taxes paid on |
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| Year | Maximum Earnings taxed |
OASDI Tax rate |
Medicare Tax Rate |
Year | Maximum Earnings taxed |
OASDI Tax rate |
Medicare Tax Rate |
| 1937 | 3,000 | 2% | — | 1978 | 17,700 | 10.1% | 2.0% |
| 1938 | 3,000 | 2% | — | 1979 | 22,900 | 10.16% | 2.1% |
| 1939 | 3,000 | 2% | — | 1980 | 25,900 | 10.16% | 2.1% |
| 1940 | 3,000 | 2% | — | 1981 | 29,700 | 10.7% | 2.6% |
| 1941 | 3,000 | 2% | — | 1982 | 32,400 | 10.8% | 2.6% |
| 1942 | 3,000 | 2% | — | 1983 | 35,700 | 10.8% | 2.6% |
| 1943 | 3,000 | 2% | — | 1984 | 37,800 | 11.4% | 2.6% |
| 1944 | 3,000 | 2% | — | 1985 | 39,600 | 11.4% | 2.7% |
| 1945 | 3,000 | 2% | — | 1986 | 42,000 | 11.4% | 2.9% |
| 1946 | 3,000 | 2% | — | 1987 | 43,800 | 11.4% | 2.9% |
| 1947 | 3,000 | 2% | — | 1988 | 45,000 | 12.12% | 2.9% |
| 1948 | 3,000 | 2% | — | 1989 | 48,000 | 12.12% | 2.9% |
| 1949 | 3,000 | 2% | — | 1990 | 51,300 | 12.4% | 2.9% |
| 1950 | 3,000 | 3% | — | 1991 | 53,400 | 12.4% | 2.9% |
| 1951 | 3,600 | 3% | — | 1992 | 55,500 | 12.4% | 2.9% |
| 1952 | 3,600 | 3% | — | 1993 | 57,600 | 12.4% | 2.9% |
| 1953 | 3,600 | 3% | — | 1994 | 60,600 | 12.4% | 2.9% |
| 1954 | 3,600 | 4% | — | 1995 | 61,200 | 12.4% | 2.9% |
| 1955 | 4,200 | 4% | — | 1996 | 62,700 | 12.4% | 2.9% |
| 1956 | 4,200 | 4% | — | 1997 | 65,400 | 12.4% | 2.9% |
| 1957 | 4,200 | 4.5% | — | 1998 | 68,400 | 12.4% | 2.9% |
| 1958 | 4,200 | 4.5% | — | 1999 | 72,600 | 12.4% | 2.9% |
| 1959 | 4,800 | 5% | — | 2000 | 76,200 | 12.4% | 2.9% |
| 1960 | 4,800 | 6% | — | 2001 | 80,400 | 12.4% | 2.9% |
| 1961 | 4,800 | 6% | — | 2002 | 84,900 | 12.4% | 2.9% |
| 1962 | 4,800 | 6.25% | — | 2003 | 87,000 | 12.4% | 2.9% |
| 1963 | 4,800 | 7.25% | — | 2004 | 87,900 | 12.4% | 2.9% |
| 1964 | 4,800 | 7.25% | — | 2005 | 90,000 | 12.4% | 2.9% |
| 1965 | 4,800 | 7.25% | — | 2006 | 94,200 | 12.4% | 2.9% |
| 1966 | 6,600 | 7.7% | 0.7% | 2007 | 97,500 | 12.4% | 2.9% |
| 1967 | 6,600 | 7.8% | 1.0% | 2008 | 102,000 | 12.4% | 2.9% |
| 1968 | 7,800 | 7.6% | 1.2% | 2009 | 106,800 | 12.4% | 2.9% |
| 1969 | 7,800 | 8.4% | 1.2% | 2010 | 106,800 | 12.4% | 2.9% |
| 1970 | 7,800 | 8.4% | 1.2% | 2011 | 106,800 | 10.4% | 2.9% |
| 1971 | 7,800 | 9.2% | 1.2% | 2012 | 110,100 | 10.4% | 2.9% |
| 1972 | 9,000 | 9.2% | 1.2% | 2013 | 113,700 | 12.4% | 2.9% |
| 1973 | 10,800 | 9.7% | 2.0% | 2014 | 117,000 | 12.4% | 2.9% |
| 1974 | 13,200 | 9.9% | 1.8% | 2015 | 118,500 | 12.4% | 2.9% |
| 1975 | 14,100 | 9.9% | 1.8% | 2016 | 118,500 | 12.4% | 2.9% |
| 1976 | 15,300 | 9.9% | 1.8% | 2017 | 127,200 | 12.4% | 2.9% |
| 1977 | 16,500 | 9.9% | 1.8% | 2018 | 128,400 | 12.4% | 2.9% |
| Notes: Tax rate is the sum of the OASDI and Medicare rate for employers and workers. In 2011 and 2012, the OASDI tax rate on workers was set temporarily to 4.2% while the employers OASDI rate remained at 6.2% giving 10.4% total rate. Medicare taxes of 2.9% now (2013) have no taxable income ceiling. Sources: Social Security Administration |
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A limited form of the Social Security program started during President Franklin D. Roosevelt's first term. It started using "social insurance" to help during the Great Depression of the 1930s.
Images for kids
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Impact of gender and wage levels on net SS benefits
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Net lifetime SS benefits of married men and women where only one person works
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Social Security – Ratio of Covered Workers to Retirees
See also
In Spanish: Seguridad Social (Estados Unidos) para niños
