The word ‘Social Security Number’ (SSN) is not new to an average individual who lives in the United States, especially an individual who has started to work and earn a living. This is because a person must apply for their SSN the moment you start a job.
Although SSNs are essential, not many understand the source and the reason everyone is required to have SSNs.
Are you unsure of what SSNs are? This article is for you, as we will be exploring what the Social Security Program is, its origin, how it works, and every other thing you need to know.
First, What Is Social Security?
Social Security is a program that uses publicly generated money to provide economic security/insurance for the members of the public. The program was established in 1935 by the United States Government to provide Supplementary Security Income for aged persons, survivors, and persons with disability (PWDs).
Basically, you can benefit from the Social Security Program based on your remitted social security taxes. Knowing this prevents people from absconding from paying the Social Security Taxes because they see it more as a seed, which would be harvested in the nearest future rather than an obligation from which they are not benefitting.
Although the Social Security benefits are calculated based on the remitted taxes individuals pay, special consideration is put in place for low-income earners because they need more money. Hence, a dollar remitted by a low-income earner as tax provides them a higher benefit compared to the benefit accrued to a high-income earner who also pays in one dollar.
Origin of Social Security Numbers
As previously stated in the introductory part of this article, the Social Security Program was established in 1935. It was formerly called Economic Security Act, and it birthed the Social Security Numbers to fulfill the program’s purpose effectively. Social Security Numbers (SSNs) were then created in 1936 by Social Security.
During the establishment of the program, digital devices were non-existent. As a result of that gap, the Social Security Personnel needed to find a way to effectively sort out the vast numbers of applications that arrived in Baltimore, the agency’s office, where the region organizes files alphabetically.
To ensure that Applicants’ files were organized quickly, the officials developed 9-digit SSNs containing Area Numbers, Group numbers, and serial numbers.
This old system was used until 2011, although there were several alterations within that time. The change, amongst other things, facilitated security against identity theft.
FAQs
Is It Compulsory for Everyone to Have A Social Security Number?
Yes, it is. This is because you cannot obtain a credit card nor get a driver’s license without a Social Security Number. Furthermore, you cannot do several other important things without a Social Security Number.
Can Children Have Social Security Numbers?
The application for a child’s Social Security Number is voluntary and possible; it can be done by the guardian or parent(s). It is possible to get SSNs for children, especially if one wants to open an account for the child or get medical coverage for their children. Most people receive their children’s SSNs at the time of their birth.
Final Thoughts
It is impossible to overemphasize the importance of Social Security Numbers. Everyone must apply for their SSNs not only for the present use of the numbers but also because of the future associated benefits.
Hopefully, you’ll find this article helpful – reach out to us in the comment section if you have more questions and ideas about how Social Security Numbers work. We will be happy to hear from you!