Question

Who is covered by Social Security? Describe the eligibility requirements?

How is Social Security financed?

What is Primary Insurance Amount and Family Maximum Benefit?

Answer 1

Social Security Benefits are financed through Payroll Taxes. Both Employers and employees pay 6.2% each.

Maximum Payroll amount to which social security taxes apply is % 118,500.

Continuing with our answer. The Self employed pays a tax of 12.4%.

The maximum family benefit is the maximum monthly amount that can be paid on a worker's earnings record.

If one or more of the children also qualifies for benefits, there is a limit to the amount that is paid to the family. The total depends on legatee’s benefit amount and the number of family members who also qualify on your record. Social Security's family maximum rules limit the total benefits payable to a beneficiary's family.