Question

What is the state unemployment tax? What or the comparisons of Social Security to the Railroad Tax Act. Explain.

Answer 1

State Unemployment Tax Act (or SUTA) are those designed to finance the cost of state unemployment insurance benefits in the United States, which make up all of unemployment insurance expenditures in normal times, and the majority of unemployment insurance expenditures during downturns, with the remainder paid in part by the federal government for "emergency" benefit extensions.

comparisons of Social Security to the Railroad Tax Act

1. Retirement

Retirement benefits are calculated the same way as Social Security retirement benefits, but the eligibility requirements differ. To be eligible for railroad retirement benefits, a worker must have been employed by the railroad for just five years (if the employment was after 1995), or ten years if the employment was before 1995. There is a reduction in retirement benefits, however, if the worker was employed by the railroad for less than 30 years.

Just like with Social Security, a railroad worker is not entitled to take retirement benefits until the age of 62 (with one exception, below). Also like Social Security, if benefits are taken at this age, it is considered early retirement, and benefits will be permanently reduced. Normal railroad retirement age is between 65 and 67, depending on the birthdate of the worker. This is the same as for Social Security.

However, unlike Social Security, RRB allows a person to get full retirement benefits at the age of 60 if he or she has worked for at least 30 years for an RRB covered employer.

2. Unemployment and Sickness Benefits

Unlike Social Security, workers covered by RRB may also be entitled to unemployment or sickness benefits. Contact the RRB for more information on these benefits.

3.Children's Benefits

Unlike Social Security, children of railroad workers can technically only get RRB if the covered parent has died. On the other hand, RRB includes a minimum payment provision to make sure that a family who is covered by RRB will get the same amount in benefits as a similarly situated family who is getting Social Security benefits. So a family with child under 18 will get an increase in their retirement or disability benefits to account for the child.