Where your tax money is going—Social Security

Today is Tax Day. Hopefully, you’ve already filed your return but if you haven’t, you have until midnight tonight. Tax Day is a good time to look at your W-2 and paystubs and understand where your money is going.

FICA tax

Did you know that 6.2 percent of every paycheck goes to the Federal Insurance Contributions Act, or FICA, withholding? FICA is a payroll tax used to fund the Social Security and Medicare programs.

That Social Security disability is funded through a payroll tax that all workers pay runs contrary to language many politicians and pundits use referring to the program. They often use the word “entitlement” when speaking of the program. Pond Lehocky Stern Giordano’s partners are trying to change the conversation.

Not ‘handouts’

Social Security is not a “giveaway” or a “handout.” Both programs are fully funded by the FICA payroll tax levied on employers and employees. The government collects the money that you pay into the system and holds it for you, giving it back to you in retirement and disability benefits.

“It’s not an entitlement,” Pond Lehocky Managing Partner Sam Pond explained, “Stop having these folks, these politicians change the law and change our system to take away the benefit you paid for by having 6.2 percent of your paycheck taken for Social Security.”

“You paid for it. And you earned interest on that money under that fund,” he said.

Partner Tom Giordano Jr. added, “We didn’t ask for that money to be taken out. It just was. The FICA tax pays for three things: Social Security retirement, Medicare and Social Security disability.”

Social Security disability is an insurance policy that covers you if you become unable to work because of any medical condition. You bought this disability plan and it is your right to collect this money if you cannot work any longer.

If you suffer from a medical condition and cannot work, you may be eligible for benefits. We refer our Social Security cases to Pond Lehocky Stern Giordano Disability. Chat with an intake specialist and learn more information on Pond Lehocky Disability’s website.

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