...

Who Pays for Disability Insurance Benefits?

Request free Consultation
Who pays for Insurance Benefits ?

Workers and employers pay for the Disablity Insurance program with part of their Social Security taxes. Each workers and employers pay a Social Security tax that is 6.2% of workers earnings up to a cap of $110,100 in 2012. The cap is adjusted each year to keep pace with average wages. Of the normal 6.2%, 5.3% goes to pay for Social Security retirement and survivor benefits and 0.9% pays for disability insurance. The combined tax paid by the workers and employers for disability insurance is 1.8% of wages, while the combined tax for retirement and survivor benefits is 10.6%, for a total of 12.4%.

Request free Consultation

Related Posts

Boomerang Buyers

The Boomerang Buyers are hitting the real estate market really hard. For those of you unaware of the term, the...

A landlord can legally cancel the rental agreement if the tenant commits a significant violation or break the law

A landlord can legally cancel the rental agreement if the tenant commits a significant violation or break the law. Ending...

SSDI program cost

In 2011, the SSDI trust fund received $106.3 billion, mainly from the 0.9% tax on wages that workers and employers...