Social Security: Who Is Covered Under the Program?

"Social Security pays cash benefits to about 65 million people each month. In all cases, a Social Security beneficiary becomes eligible for benefits either by working in a job that is covered by Social Security (a covered worker), by having a close family relationship to a covered worker, or both (among other requirements). For people who work in jobs that are covered by Social Security, participation is mandatory. Covered workers and their employers are required to pay Social Security payroll taxes. In 2021, workers pay 6.2% of earnings in covered employment up to a maximum earnings of $142,800. The maximum is adjusted annually based on average wage growth in the national economy. Employers pay a corresponding amount—6.2% of the worker’s covered earnings up to the annual maximum. Self-employed workers pay 12.4% of net earnings up to the annual maximum.

To become eligible for benefits, a worker must have a sufficient connection to covered employment, which is measured in terms of Quarters of Coverage (QCs). In 2021, a worker earns one QC for every $1,470 in covered earnings up to a maximum of fourQCs for the year (based on covered earnings of $5,880 or more). The amount needed to earn one QC is adjusted annually based on average wage growth in the national economy. When a worker has earned a sufficient number of QCs, he or she is insured under the program. The number of QCs needed for insured status varies depending on the circumstances and type of benefit, ranging from a minimum of six QCs to a maximum of 40 QCs. Insured status allows a worker to establish eligibility for retired-worker or disabled-worker benefits and for the worker’s family members to establish eligibility for benefits in the event of the worker’s retirement, disability, or death. See CRS Report R42035, Social Security Primer.."
Social Security