Question

Each payday, some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld?

Answer 1

Virtually all workers in the United States have to pay the Social Security tax, which is related to all income from labor. This tax is also known as Old Age, Survivors, and Disability Insurance. As the name indicates, the tax is meant to be a contribution to a fund for future Social Security retirement benefits, as well as disability benefits and benefits for widows and widowers. This tax ensures that people who cannot work are still protected.

Answer 2

It is taken from you as cash and then its spread out and transfers to elderly and disabled people.