The social security act is a federal law passed in 1935 to establish a system of transfer payments in which the young and productive support the elderly, and retired individuals. The law was enacted in during the reign of President Franklin D. Roosevelt, it provides old-age benefits to employees and the jobless. It also offers aid to dependent mothers and children, the physically disabled, blind, and the victims of work-related injuries. Initially, issues facing these group were not within the purview of the federal government excepts pensions paid to veterans. Starting from 1937, the federal government started collecting the social security tax from employees and made the first payments in 1940. The law is the foundation for many features of American labor laws. The social upheaval experienced by Americans during the Great Depression offered the incentive for the law, which formed part of Roosevelt’s Second New Deal programs to help the country manage the fast social and economic changes caused by urbanization and industrialization. Before the law was enacted. A large number of older Americans would slide into poverty during old age. It is considered one of the most effective social programs in the history of the united states. However, it is also complex, while its disability element is considered ineffective. The rules that govern the statute are contained in Title 42 of the U.S Code under Chapter 17. An important feature of the law is the funding, which is through payroll tax. When combined with the medicate tax, it is known as FICA. The social security tax rate from 2020 and 2021 is 6.2%. this tax is deducted from an employee’s paycheck.
https://www.ourdocuments.gov/doc.php?flash=false&doc=68
Reference
Social Security Act (1935). https://www.ourdocuments.gov/doc.php?flash=false&doc=68
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