What is a Social Security Number?
A Social Security number is a nine digit code that is assigned to every US citizen, permanent resident, and temporary worker in the United States. The number is very important you need it to legally work, open a bank account, and receive government benefits. If you have ever wondered why Social Security numbers were created, what they are used for, and how to get one, this article will answer those questions.
History of the Social Security Number
Social Security numbers were introduced in 1935 as part of the New Deal Social Security Program, which was implemented by Franklin D. Roosevelt. The program used public funds to provide benefits for the public, including old age income, disability benefits, and survivor’s insurance. The US government started to collect taxes in 1937, and this money was used to provide benefits to the elderly and disabled.
What is the Purpose of a Social Security Number?
The main purpose of a Social Security number is to record the amount of taxes you pay so that you can receive the appropriate benefits when you need them. Every employer and employee in the United States must pay Social Security taxes. The Social Security program tracks the amount of money you put in over the years. If you lose your job, have an accident that prevents you from working, or retire later in life, you are paid back a proportion of the money you put into the system.
What do the Numbers Mean?
A Social Security number is broken into three parts. The first three digits indicate the geographical area where you applied for the card. This is based on the state or ZIP code. The two middle digits break down the area even further, and the last four digits are randomly assigned for administrative purposes.
What do I Need a Social Security Card For?
Every employee in the United States needs to have a Social Security number to legally work. This allows the government to see exactly how much money you pay in taxes each year. You may also need a Social Security number to open a bank account, get a loan, get medical coverage, receive social benefits, and use government services.
How do I get a Social Security Number?
Many parents apply for a Social Security number for their children when the children are born. However, if you do not have an SSN already, you must fill in an Application For a Social Security Card, otherwise known as Form SS-5. You will also need to show the Social Security Office documents that attest to your US citizenship, age, and identity. If you are not a US citizen, you must show proof of your immigration status and work permit. After submitting the documents, the Social Security Office will mail you a card with your number on it.
A Social Security number is very important for a number of reasons. It allows you to receive income, and government benefits. It can also help you to open a bank account, get medical care, and take out a loan. Once you have your SSN, it is very important to keep your number safe as you will need to use it for the rest of your life.
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