In recent months there has been public debate over payroll taxes and other public debate over the funding for Social Security. Miami Social Security Disability lawyers are aware that the disability program acts as an insurance based program through the federal government. Workers are given the benefit of the insurance program after paying into the system during their working career, should they ever become disabled and find that they are no longer able to work.

So the question arises: "How is the SDDI program funded?" Most Americans understand that retirement benefits from the Social Security Administration are funded through the payroll tax. SSDI benefits are also funded in the same way. The SSA has two trust funds, one that is earmarked for retirement and one that is used to pay disability benefits.

Each worker has taxes deducted from their paycheck to pay taxes under the Federal Insurance Contributions Act. Self-employed workers and contractors are required to pay self-employment taxes under IRS rules. For employees who have payroll taxes deducted from their check, the employer currently deducts 5.65 percent of income and applies that toward the FICA tax. The employer then also contributes the equivalent of 7.65 percent of an employee's income to FICA.

Self-employed workers currently pay 10.4 percent into FICA as a self-employment tax. The higher rate for the self-employed is due to the fact that no employer is making a contribution on the worker's behalf.

The current rates are set under the payroll tax holiday that the government created as a stimulus for the troubled economy. The rates will go up next February, if Congress does not act to restore FICA taxes to their original higher rates. The taxes are paid up to a certain level of income that is subject to change each year.

Payroll taxes are used to fund some of the various services under the federal government's social safety net. FICA taxes, or payroll taxes, are used to pay for retirement, disability, survivor and Medicare benefits from the federal government. Supplemental Security Income, however, operates a bit differently.

SSI benefits are available from the Social Security Administration for low-income Americans who are blind, aged or disabled. The SSI benefits are not tied to work history, as the benefits are not funded under the federal government's insurance-type programs. SSI benefits are a part of the social safety net of the government, but are funded through general tax revenues.

Florida residents who believe that they may be entitles to SSDI or SSI benefits should consider speaking with an experienced South Florida Social Security lawyer to learn more about how the application and appeals process works.

Source: Western Farm Press, "Social security basics for the agriculture industry," Warren L. Schauer, of Michigan State University Extension, Feb.1, 2012