What is Social Security?

Social Security Disability Insurance, or SSD, is a federal insurance program that assists workers unable to work because of a disability.  Assistance comes in the form of wage replacement income that varies in amount.  The Federal Insurances Contribution Act (FICA) tax is the payroll tax that funds Social Security Disability Insurance.  Both employers and employees are subject to paying the FICA tax.
               

The Social Security Social Insurance Program, that SSD belongs to, was begun by President Roosevelt in 1935 as part of the New Deal.  President Roosevelt really understood the disabled worker’s plight, he himself having been left permanently paralyzed from the waist down by illness.  At first Social Security was controversial and hotly debated.  Many contended that because employers had to pay into the tax there would be a loss of jobs, which would have been devastating in the Depression Era of the 1930’s. 

Another point of controversy was the fact that women and minorities weren’t included in parts of the Social Security program, including unemployment.  However, throughout the years there have been numerous amendments made, and today Social Security is among the most popular government programs.

SSD is regulated by the Social Security Administration, which was originally called the Social Security Board in 1935.  It is through the Social Security Administration that individuals can apply for disability benefits, and it is the administration that decides if someone is eligible to receive benefits.  With millions of people receiving social security benefits each year the SSA is one of the busiest arms of the government.

There are some basics workers should know about SSDI.  Firstly, not every worker automatically receives SSDI if injured or ill.  Only workers that have worked five of the previous ten years, paying the FICA tax, are eligible for SSDI.  In addition, there are many requirements related to the injury or illness that must also be met to prove that you are indeed unable to work.  Also, SSD is by no means immediate. 

Because the Social Security Agency is backlogged by the millions applying for Social Security each year it can take quite some time before a worker receives wage replacement.  The length of time varies depending on what part of the process a worker is in when they are approved.  It would be wise to plan ahead and have money saved in case of an injury or illness since it isn’t uncommon for the process to take months before approval.