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How Social Security Numbers Work

In the United States, the nine digits that make up your Social Security number (SSN) may be the most important numbers in your life. You are required to apply for your SSN when you start your first job, and it stays with you from then on! We use our SSNs daily, although many times we don't even know it.

Important as it is, we may not know much about the origin of our specific number and how SSNs generally came to be. We certainly do know we don't want other people using our SSN as their own, especially not 40,000 other people, as happened to one woman we'll discuss a little later!

In this article, we'll tell you about about how the Social Security program began and answer some common questions regarding SSNs. We'll also tell you what to do if your card is lost or stolen and how you can deal with and prevent Social Security fraud. But first, we'll tell you what your numbers are for, what they mean and how you get the specific number you'll have for the rest of your life.

Generally, the term social security describes a program that uses public funds to provide a degree of economic security for the public. The specific social security discussed here is the United States government program established in 1935 that provides old age, disability, and survivors insurance, as well as supplemental security income, an income for elderly or disabled people.

n the United States, employers and employees are required to pay Social Security taxes. The money raised from these taxes primarily goes to providing benefits for those who have reached retirement age or are otherwise currently eligible. In this way, today's workers provide funds for the people drawing benefits today, and when today's workers retire, the workers of that time will (at least theoretically) provide the funds. You receive Social Security benefits based on the amount of Social Security taxes you have paid, which, up to a certain maximum amount, is based on your income. People who have had greater incomes tend to get greater Social Security benefits. But Social Security also pays a disproportionate amount to people earning low incomes. They need the money more, and a dollar they pay in Social Security taxes provides them higher benefits than a dollar paid by a high-roller. In this way, Social Security in principle provides for those in need.

Social Security reform is in the news pretty consistently. This is beyond the scope of our discussion here but you can learn more about Social Security reform at the Social Security Reform Center. See also How does the Social Security system work?.

The original and essential purpose of SSNs is to keep track of the money you put into the Social Security program so that you can get the benefits you're entitled to. The government needs lifelong, unique identity numbers to keep track of people's payments throughout an entire working life, no matter how often we move or change occupations or even change our names.

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How Social Security Works

The U.S. Social Security system has been in the news a lot lately. While politicians throw around dramatic words like "crisis" and "bankrupt," regular Americans have more mundane concerns. How will they pay their bills when they retire? What happens if they are disabled and unable to provide for their families?

Social Security is a system that attempts to address all these issues and more. From its roots in the Great Depression, Social Security has changed with the times to try and help poor, out-of-work, disabled and elderly Americans. Whether the system is truly in crisis or not, it will surely have to change in the coming decades as the number of retirees increases relative to the number of workers.

Social Security is a far-reaching system, offering many types of benefits. In this article, we'll focus on the retirement- and disability-benefit aspects of the Social Security system. We'll find out how Social Security got started, how it works today and what might happen in the future if we don't make some changes.

Most Americans are covered by some form of Social Security. Exceptions include some government employees and railroad workers, who are covered by other programs, and certain agricultural and domestic workers. But chances are, if you are a U.S. citizen and you work in the United States, you receive a statement in the mail every year that looks something like this:

If you receive this statement, it means that you are paying a certain percentage of your salary into the Social Security system -- and the idea is that you will get this money back once you retire so you have some extra money to live on once you stop receiving your paycheck.

In the next section, we'll look at the different types of Social Security benefits.

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How to Install a Home Security System for youeself home

Some home security systems are complex and should be installed by a professional. However, there are many good home security systems sold in kit forms that can be installed by any do-it-yourselfer. Most simple systems use a bell, loud buzzer, or other sound source to note intrusion.

Installation involves mounting the sound source or sounder in a location where it can be easily heard. Then attach a circuit of switches to the sounder and connect a battery to the system. Since the sounder operates from the battery, it remains an effective alarm system even in the event of a power failure. Alternately, battery-operated remote wireless sensors and controls can be installed. However, make sure that batteries are replaced regularly.

In electrical terminology, this alarm system is called a closed-circuit system. When the doors and windows are shut, the attached switches are closed. Because all the switches are in a wiring loop, opening any one of them breaks the loop and triggers the sounder circuit. Simply closing the door or window, moreover, does not restore the switch loop circuit continuity and does not stop the sound until either the battery becomes exhausted or someone switches off the circuit from battery to sounder.

There is an electronic switch built into the sounder. This switch is turned on by breaking the magnetic-switch loop. A key-operated switch in the sounder circuit allows you to turn the alarm system completely off when it is not needed. Also, once the alarm goes on, operating the key switch is the only way to silence the sounder. Only someone who has a key to the switch can reset the system.

The switch device consists of two parts that look much alike: one small plastic box that contains a strong magnet, and another that contains the actual switch. When magnet and switch are not near each other, the switch contacts are separated and the switch is open. On the other hand, when the magnet and switch are near each other, the switch contacts move together and the switch closes. The magnet part of the device is screwed to a door or window, and the switch part is screwed to the door or window frame. Thus, opening a door or window separates magnet from switch, causing the switch to open and trigger the alarm.

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