What is the primary function of Social Security Tax?

The primary function of Social Security Tax is to pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). This tax is specifically designed to fund Social Security programs, which provide financial assistance to retirees, disabled individuals, and survivors of deceased workers. The revenue generated from this tax is critical in ensuring that these benefits can be sustained for current and future recipients.

While educational institutions and local government projects may receive funding from various types of taxes and sources, Social Security Tax does not directly contribute to those areas. Similarly, health insurance for the unemployed is typically financed through different programs, such as unemployment insurance rather than through Social Security Tax. Each of these options addresses different aspects of government funding, but the essence of Social Security Tax remains tied specifically to the support of Social Security benefits.