Page "Social Security debate in the United States" Paragraph 12

Social Security is funded through the Federal Insurance Contributions Act tax ( FICA ), a payroll tax.

Employers and employees are responsible for making equal FICA contributions.

During 2012, Social Security taxes were levied on the first $ 110, 100 of income for employment ; amounts earned above that are not taxed.

Covered workers are eligible for retirement and disability benefits.

If a covered worker dies, his or her spouse and children may receive survivors ' benefits.

Social Security accounts are not the property of their beneficiary and are used solely to determine benefit levels.

Social Security funds are not invested on behalf of beneficiaries.

Instead, current receipts are used to pay current benefits ( the system known as " pay-as-you-go "), as is typical of some insurance and defined-benefit plans.