In 1935, the Social Security Act was signed into law by President Franklin D. Roosevelt. Among other provisions, the Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement. The Act has been amended many times since then, but it continues to provide retired workers income after retirement. It also provides retired workers with access to medical insurance under the Medicare provisions.
Social Security and Medicare are administered by the federal government. They are funded by payroll taxes imposed on workers and employers.
Lehigh University and its employees share the cost of Social Security and Medicare taxes. These taxes are based on a percentage of earnings paid to employees and are paid by both the employee and the University. The current rates are:
Social Security - 6.20 percent of earnings up to $97,500 per year
Medicare - 1.45 percent of earnings (no limit on earnings)
For additional information, go to:
|