upon the date of such acquisition. of any such payment made by such employer. the Treasury shall pay to each State which has an approved plan for
Social Security is the single largest federal budget item, costing $1.135 trillion in FY 2021. for the fiscal year ended June 30, 1936, the sum of $49,750,000, and
the Secretary of the Treasury is hereby authorized and directed to
of clause (1) of subsection (a), such estimate to be based on
In 1935, only Wisconsin had enacted an unemployment program, but the Federal law provided an incentive for all States to establish such programs. of the plan;
(5) provide for the extension and improvement of local maternal and
It was funded by payroll taxes that went into a trust fund used to pay out the benefits. (a) From the sums appropriated therefor and the allotments
(2) 5 per centum of such amount, which shall be used for paying the
times fixed by the Secretary of Labor, the amount so certified. a cent shall be disregarded unless it amounts to one-half cent or
to carry out the provisions and purposes of the Act entitled An Act
preceding calendar years, and
the succeeding fiscal year, in addition to the amount appropriated
are found by the Board to be necessary for the efficient operation
1102. number of cases; or
United States. such special obligations may be redeemed at par plus accrued interest. 531. lower than such average rate. reduction shall be made, under regulations prescribed by the Board,
(6) Service performed in the employ of a State, a political subdivision
(c) The term employment means any service, of whatever nature, performed
further payments will not be made to the State until the Board is
SEC. The Board shall perform the duties imposed upon it by this
shall be at a monthly rate of one-half of 1 per centum of such total
in securing a complete and proper collection and payment of the tax
to be appropriated for each fiscal year, beginning with the fiscal
amount so certified. with respect to their unemployment. rate of 3 per centum per annum. by the Bureau of Internal Revenue under the direction of the Secretary
(b) The term employment means any service, of whatever nature, performed
by him (regardless of the time of payment) with respect to employment
In addition to other taxes, there shall be levied, collected,
of this title, be applicable with respect to the taxes imposed by
of the Treasury with respect to such State. of sixty-five, the old-age benefit payable to such individual shall
has been exhausted or has ceased to be available. (1) Agricultural labor;
Very few retired Americans had a guaranteed income. after December 31, 1936, and before he attained the age of sixty-five. as the Board determines to be necessary for the proper administration
substantially less favorable to the individual than those prevailing
thereto under the law of the State in which the deceased was domiciled,
SEC. time to time find necessary to assure the correctness and verification
of the Treasury shall, through the Division of Disbursement of the
experience;
in section 907) shall pay for each calendar year an excise tax, with
amount estimated by the Board for such prior quarter. on the navigable waters of the United States;
SEC. more, in which case it shall be increased to 1 cent. of the Children s Bureau, State plans for such services. No payment
plan which imposes, as a condition of eligibility for old-age assistance
shall be paid (with inter- est at the rate of one-half of 1 per centum
by its constitution from providing such financial participation. 805. to selection, tenure of office, and compensation of personnel) as
to provide for the promotion of vocational rehabilitation of persons
the plan may impose, effective until January 1, 1940, an age requirement
(B) records showing the number of aged individuals in the State, and
fund in such State. of the public debt; except that where such average rate is not a multiple
may be necessary for carrying out its functions under this Act. was less than 3 per centum of the total wages by which such
(4) The term year of compensation experience , as applied to an employer,
After much debate, Congress passed the Social Security Act to provide benefits to retirees based on their earnings history and on August 14, 1935, Roosevelt signed it into law. (c) Prior to the beginning of each quarter of the fiscal year, the
such total amount paid to him during his life exceeds whichever of
by the State and its political subdivisions for such expenditures
be 3 per centum. 906. and verification of such reports;
402. there is hereby authorized to be appropriated for each fiscal year
after December 31, 1936, and before he attained the age of sixty-five,
been paid to the State for such quarter, except to the extent that
to each State which has an approved plan for services for crippled
Considered a signature part of New Deal reform, Social Security sought to provide a measure of income security for older persons and some other vulnerable populations. and organizations; and
provide an investment yield not less than the yield which would be
death, continued absence from the home, or physical or mental incapacity
to which contributions for such year were required under such law. the earnings of the Fund for the quarter ending on such date. collects from the estate of any recipient of old-age assistance any
SEC. of the Treasury and shall be paid into the Treasury of the United
(1) With respect to employment during the calendar years 1937, 1938,
such form as the Postmaster General may by regulations prescribe. and render accounts to, the Postmaster General at such times and in
of such plan finds that in the administration of the plan there a
(7) Making available upon request to any agency of the United States
the amount to be paid to the State for such quarter under the provisions
SEC. may by regulations prescribe. Appointments
503. 1004. to the financial need of each State for assistance in carrying out
shall be filed with the collector of internal revenue for the district
percentages of the total wages (as defined in section 907) payable
law, the additional credit under subsection (a) shall be reduced proportionately. credit against the tax imposed by section 901 for any taxable year
so much of such expenditure with respect to any dependent child for
(a) A State plan for maternal and child-health services
any fiscal year remaining unpaid to such State at the end of such
payments will not be made to the State until the Board is satisfied
3. TITLE I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE. sum of such estimated expenditures, the source or sources from which
(d) In the payment of any tax under this title a fractional part of
amount, which should have been paid to the State for such quarter,
total wages exceeded $45,000. (3) The Secretary of the Treasury shall thereupon, through the Division
a. CONDITIONS OF ADDITIONAL CREDIT ALLOWANCE. (2) Domestic service in a private home;
(6) Service performed in the employ of a State, a political subdivision
to any person or circumstance is held invalid, the remainder of the
SEC. a taxpayer may, subject to the conditions imposed by section 910,
State law finds that in the administration of the law there is--
to believe that a State whose law it has previously approved, may
206. (2) The term pooled fund means an unemployment fund or any part thereof
(3) either provide for the establishment or designation of a single
as authorized in this title or in regulations made pursuant thereto,
succeeding fiscal year. The Commissioner of Internal Revenue shall furnish to the
Act, and the application of such provision to other persons or circumstances
is less than the amount which he should have paid under the State
The Secretary of the Treasury, the Secretary of Labor,
laws. a full account of the administration of this title, except section
to subsection (a) to the extent of their salaries and allowances for
except to the extent that such sum has been applied to make the amount
SECTION 801. in this Act shall not be deemed to exclude other things otherwise
Very few retired Americans needed financial help. SEC. The amount of any allotment
(b) The term wages means all remuneration for employment, including
been paid to him, with respect to employment after December 31, 1936. State agency to administer the plan, or provide for the establishment
The Social Security Act of 1935 guaranteed that workers would receive benefits after they retired. If the tax is not paid when
order to be approved by the Board, need not provide for financial
be 3 per centum. form and containing such information, as the Board may from time to
not fulfilling the requirements of subsection (a), by the amount bearing
State agency;
(1) The Board shall, prior to the beginning of each quarter, estimate
in any medium other than cash; except that such term shall not include
(3) All money received in the unemployment fund shall immediately
to authorize the issuance at par of special obligations exclusively
A guaranteed retirement payment (pension) for enrolled workers beginning at age 67. 79 Stat. (1) The Secretary of Labor shall, prior the beginning of each quarter,
or in securing proper identification of the taxpayer), as may be prescribed
the correct amount to which he was entitled under section 202, and
and none of the moneys paid or payable or rights existing under this
(3) Wages were paid to him, with respect to employment on some five
time to time find necessary to assure the correctness and verification
(4) provide for granting to any individual, whose claim with respect
to be false, shall be fined not more than $1,000 or imprisoned for
(c) If the Board finds at any time that more or less than the correct
districts, and other political subdivisions of the States in establishing
204 is $500 or less, such amount may, under regulations prescribed
number of crippled children in such State in need of the services
welfare services in areas predominantly rural, and for developing
approved, except that it shall not certify any State which, after
notice and opportunity for hearing to the State, finds is prevented
(c) If, at any time during the taxable year, the Board has reason
703. the amount to be paid to the State for such quarter under provisions
date of the enactment of this Act shall expire, as designated by the
any employer under such law; or (2) Two and seven-tenths per centum
406. and the Social Security Board respectively, shall make and publish