![]() 8īy mid-1937, Social Security field offices were able to take over. 7 Within about six months, approximately 35 million SSNs had been issued. They were sent to the main Social Security Office in Baltimore, Maryland. The post office did not keep the records. In November 1936, the first SSNs were issued by these typing centers and thousands of people were given their 9-digit number. From these, 1,074 post offices were called on to be "typing centers" to issue Social Security cards and SSNs. At this time, there were approximately 45,000 post offices across the nation. Postal Service accepted the responsibility of issuing SSNs. While the details of the Social Security Act were being worked out, the U.S. The last four digits, the serial number, represented the order within each group.īut issuing SSNs was a work in progress. 6 The next two digits, the group number, were determined by issuing numbers in groups to issuing offices. For example, a worker could apply in person for an SSN in any Social Security office, and the area number would reflect that office's location, regardless of the worker's residence. ![]() (See boxed insert, "Sample SSN Area Numbers and Locations.") Generally, lowest area numbers were given to people on the East Coast, with increasingly higher numbers given going westward. The first three digits, the area number, represented the state in which the SSN was issued. The chosen solution was to use a 9-digit number divided into three parts: area number, group number, and serial number. Can you imagine the difficulty in keeping accurate earnings records for those with common names such as John Smith or Jane Jones? Several tracking plans were considered, such as using a combination of letters and numbers or using fingerprints. It was obvious that using a person's name wouldn't work. The earnings of each individual had to be tracked beginning in 1937. ![]() 5) One of its first tasks was setting up a recordkeeping system. (This was later renamed the Social Security Administration. To carry out the Social Security Act, the Social Security Board was created. 3 Named for the Act, these taxes are commonly called "FICA taxes." Employers began deducting payroll taxes from workers' wages in January 1937. It gave the responsibility of collecting payroll taxes to the Internal Revenue Service (IRS). As a result, the Federal Insurance Contributions Act (FICA) was enacted in 1935. The Social Security Act required a payroll tax for both employees and employers based on earnings. 1 Monthly benefits were scheduled to begin in 1942. Benefit amounts would be based on a person's earnings in covered employments. Upon retirement, people who were no longer working would receive monthly retirement benefits or Social Security income. Social Security's primary original purpose was to provide financial benefits to people over age 65. Although the Act was passed during the Great Depression, it was designed to ensure the future economic security of individuals and did not address the immediate economic problems of the Great Depression. Roosevelt signed the Social Security Act. This triggered a concern for the future of the elderly. Millions of people were struggling without jobs or income. The story of the SSN starts during the Great Depression. But what's the story on how the SSN became an almost universal identifier in the United States? Is there a downside to this? And there's a story to go with each change.Īmong the many changes over the years, the evolution of the SSN's usage ranks near the top. Definitely, major changes have evolved with inventions and advancing technology. Imagine living in our country 100 years ago: no televisions, microwaves, iPhones, laptops, credit cards, or ATMs-and no Social Security numbers (SSNs). "There are downsides to everything there are unintended consequences to everything."
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