The Old-Age, Survivors, and Disability Insurance Program provides monthly benefits to qualified retired and disabled workers and their dependents and to survivors of insured workers.
The government distributes OASDI benefits to recipients each month. Payroll taxes paid by employees, employers, and self-employed individuals support the OASDI program.
The old-age, survivors, and disability insurance program benefit amounts are determined by the worker's contributions to Social Security and how long the employee worked.
The Social Security tax rate for employees in 2022 is 6.2%, while the rate for self-employed individuals is 12.4%. The average monthly benefit that participants will receive in 2022 is $1,657.
The OASDI program of Social Security places a cap on the annual amount of wages that are subject to taxation. The contribution and benefit basis is capped annually. This basis amounts to $147,000 for profits in 2022.