Where do Social Security Funds Come From?
Are you unsure where Social Security funds come from?
The majority ofSocial Security dollars come from matching payroll taxes, which are paid by employers and also individuals who are self-employed. Additional dollars stem from interest earned by trust funds and from income tax paid by about one third of beneficiaries on their Social Security benefits.
Today, most payroll taxes collected from workers are used to pay people who are presently recipients of Social Security. Back in 2009, the both Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected around $807.5 billion in revenue. Of the money collected, 82.6% was derived from payroll taxes and 2.7% came from income taxes on Social Security benefits.
To learn more about how Social Security funds are accumulated, read "Fast Facts & Figures About Social Security": www.socialsecurity.gov/policy/docs/chartbooks/fast_facts/2010/.
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