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What is Social Security?

Social Security is social insurance and benefits provided by the US federal government, which includes retirement income, disability income, Medicare, and Medicaid.

Social Security benefits are paid out to retired workers and their surviving spouses on a monthly basis. Disabled individuals may also receive social security benefits.

Social Security is funded through payroll taxes collected from employees and employers. For companies, that means they must withhold part of social security and Medicare taxes from their employees’ wages, and pay a matching amount to the IRS.

Today, Social Security’s faces serious solvency issues. Small business owners and employers of all sizes might look to retirement services to help themselves and their employees adequately plan for retirement.

Want to learn more about payroll withholdings?

See how ADP helps companies with payroll and tax. Visit ADP Payroll Services >