Social Security (United States)

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
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

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.

Other websites

• Old-Age, Survivors, and Disability Insurance ("OASDI')
  • Social Security Administration
  • Social Security Advisory Board
  • Social Security Retirement Questions FAQ
  • Duties of Social Security Disability Attorneys
  • Social Security Internet Myths part 1, Social Security Internet Myths part 2
  • Congressional Budget Office: Social Security Primer (2001)
  • US Government Accountability Office, Social Security Reform: Answers to Key Questions
  • Social Security Act of 1935
  • Social Security Amendments of 1983
• Calculators
  • Social Security benefit calculators
  • Urban Institute's USA TODAY Lifetime Social Security and Medicare Benefits Calculator Archived 2015-02-23 at the Wayback Machine
• More information
  • Commission to Strengthen Social Security
  • Social Security Advisory Board
  • President's Commission to Strengthen Social Security
  • 75th Anniversary of Social Security at the Franklin D. Roosevelt Presidential Museum and Library
  • TimeLines of US SSI Numbers Archived 2016-10-10 at the Wayback Machine (Years Numbers States)
  • Social Security Death Index Information
• Articles
  • Genakoplos, John; Mitchell, Olivia S.; Zeldes, Stephen P. (1998). "Would a Privatized Social Security System Really Pay a Higher Rate of Return". In Arnold, R. Douglas; Graetz, Michael J.; Munnell, Alicia H. (eds.). Framing the Social Security Debate: Values, Politics, and Economics. Brookings Institution Press. pp. 137–156. doi:10.3386/w6713. ISBN 0-8157-0153-5.
  • Social Security: Major Decisions in the House and Senate Since 1935 Congressional Research Service (2016)
  • Social Security's Financial Outlook and Reforms: An Independent Evaluation, Jagadeesh Gokhale, member of the Social Security Advisory Board advising Congress and the President
  • Time Archives Archived 2013-08-23 at the Wayback Machine A Collection regarding Social Security's progression and perception over time