{"id":353889,"date":"2023-05-29T09:03:20","date_gmt":"2023-05-29T14:03:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/socialsecurity\/basics\/the-social-security-act-overview.html"},"modified":"2026-03-11T16:57:13","modified_gmt":"2026-03-11T21:57:13","slug":"the-social-security-act-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/socialsecurity\/basics\/the-social-security-act-overview.html","title":{"rendered":"The Social Security Act Overview"},"content":{"rendered":"\n
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The Social Security Act Overview<\/h1>\n\n
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\n By Jennifer Steinberg, Esq.<\/a> | Legally reviewed by Steven Ellison, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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The Social Security Act of 1935 is America’s foremost social welfare law. This law was enacted after the Committee on Economic Security drafted a comprehensive social insurance program. Congress passed the new legislation, and President Franklin D. Roosevelt signed the Act into federal law.<\/p>\n\n <\/div>\n\n\n\n

When people talk about the Social Security system, only a few programs seem to get all the attention. These include the retirement and disability programs. But Social Security is a more complex system of benefits that supports Americans, often when they need help the most.<\/p>\n

Read on for more information about the history of the Social Security Act and how you may qualify for monthly benefits under other Social Security programs<\/a>. If you have questions about your benefits, a Social Security attorney<\/a> can help you understand your entitlements.<\/p>\n

What Is Social Security?<\/h2>\n

Social Security is a federal insurance program that provides benefits to retired people, people who are disabled, survivors of workers who have died, and other intended beneficiaries. The Old Age, Survivors and Disability Insurance program (OASDI), the official name for Social Security, was created by the Social Security Act of 1935.<\/p>\n

How Social Security Started<\/h2>\n

The Social Security Act was part of Roosevelt’s New Deal initiatives during the Great Depression. The Act paid federal old-age benefits and benefits to unemployed or disadvantaged Americans.<\/p>\n

The Act has undergone various amendments. In 1939, the Senate and House of Representatives drafted amendments to the Act. These amendments were for payments called “dependents’ benefits.” Dependents’ benefits were payments to spouses and minor children of retired workers. The amendments also include survivor benefits paid to the worker’s family in the event of an untimely death. This program specifically provided benefits for dependents of a male wage earner.<\/p>\n

In 1965, the Act was amended again to include Medicare and Medicaid.<\/p>\n

How Social Security Retirement Benefits Work<\/h2>\n

Did you ever wonder how you pay into the Social Security retirement system? Perhaps you are curious about how the government calculates federal old-age assistance benefits.<\/p>\n

If you are employed, you and your employer each pay a small percentage of your wages through a payroll tax. These taxes earn “credits” toward Social Security retirement benefits.<\/p>\n

If you are self-employed, you must report your net earnings to the IRS and the Social Security Administration (SSA) every year. As of 2026, the self-employed tax rate<\/a> is 15.3%. This rate consists of a 12.4% tax for Social Security and 2.9% for Medicare.<\/p>\n

Your credits are used in combination with your birth year to determine when you receive retirement benefits. Full benefits are now available to retirees who are 66, depending on their birth year. Early retirees, starting at 62, may receive reduced benefits if they’ve paid Social Security taxes for 10 years or more. The SSA’s chart<\/a> and calculator<\/a>\u00a0will help you determine how much you may be entitled to and when.<\/p>\n

The following are some of the benefits available under an eligible worker’s record:<\/p>\n