Archive for April, 2011
Social Security Disability and Supplemental Security Income – The Difference Between SSD and SSI
The Social Security system has been called the safety net for disabled and elderly Americans. The system was created to protect people can no longer work, whether due to age, or disability. There are primarily two programs which protect people who have not reached retirement age, but who are unable to work due to their physical disabilities. These two programs are know as: Social Security Disability insurance, and Supplemental Security income programs.
Social Security Disability
The Social Security Disability program, or SSD is an insurance program which will provide benefits to qualified individuals in the event that they can not work due to physical disabilities. Almost everyone who is employed in the US, has paid “insurance premiums” into this program, through by way of taxes collected from their income over their working life. In order to qualify for this program, an individual needs to have paid a certain number of “quarters” into the system over their working career. If have paid forty quarters into the system, and have worked at least 5 of the last 10 years you will most likely be eligible to at least apply for these benefits. If you have not paid enough quarters into the system, you will probably need to apply for the second program available to disabled workers: Supplemental Security Income.
Supplemental Security Income
The Supplemental Security Income program, OR SSI, also administered by the Social Security Administration, provides benefits for individuals who are not able to work due to physical disabilities, but have not paid into the Social Security system for a variety of reasons. For example, a stay at home Mom, although she has worked very hard, probably has not received a paycheck and therefore not paid into the system. If she becomes unable to work for physical reasons, she may be entitled to Supplemental Security Income benefits.
SSI benefits, sometimes referred to as Federal “welfare”, are based upon the needs of the disabled individual and his or her family. Therefore in order to qualify, the applicant and their family’s total income must fall below a certain level. This is adjusted each year by the Social Security Administration.
Are you a college student or young worker getting started on your career? Curious what that FICA tax is that Read the rest of this entry »