January 12, 2008
An Overview of Social Security Disability Insurance
Two programs are being enacted by the federal government, which provides benefits for individuals with disability. Collectively, these programs are being referred to as “Social Security disability benefits.”
0 Social Security Disability Insurance Benefits Program or SSDI Benefits 0 authorized by the Social Security Act, Title II and is geared towards providing benefits to workers with disability and / or their dependents and surviving spouses or children.
0 Supplemental Security Income program or SSI 0 authorized by the Social Security Act, Title XVI and aimed at giving benefits to individuals with disability whose assets and income are below a particular level.
History of Social Security Disability Insurance (SSDI) Benefits
It was in the year 1935 when the U.S. federal government set up a program geared towards providing elderly employees of commercial and industrial sectors with retirement benefits. The scheme of this program is enacted through the Federal Insurance Contributions Act or FICA, setting up a federal retirement fund that the employees are required to pay into. The employees remit into this fund through a regular deduction on their salary.
It is the Social Security and the Medicare programs that are funded after the withdrawal of FICA tax from the employees’ salaries. Meanwhile, self-employed citizens can contribute to […]
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