Social security fund is an essential financial component in each and every country. The funds have phenomenal impacts on the various groups of people in the said economy. The funds are meant for the future use by the employee hence significant influence on their lives. Governments have initiated various policies and guidelines to help in streamlining the whole process of giving out and using these funds. For instance, the federal government of USA has empowered the Social Security Administration to collect the payroll taxes and afterwards use the funds collected to pay for various insurance covers such as people with disability and old age (United States, 1997). The issue of paying these funds has brought in a lot of controversy over who should be entitled to remit the funds, that is, whether the employee or the employer. This controversy has sparked a lot of public debates. The essay will lengthily discuss the various advantages that can be realized if the payments for the social security funds are done by the employer. Additionally, all the economic concepts regarding the said advantages will be exemplary expounded.

Payment for Social Security

The debate on who to pay the social security fund to the administration has brought forth various proposals on how to achieve the issue. The demand by the politicians that the payments should be paid by employers has various merits. Firstly, the accounting procedures by the social security administration bodies will be eased. This can be supported by the fact that employment companies will pay the funds in a wholesome manner rather than accounting for each and every employee in the country. Such an action will foster transparency and accountability in the use of public funds hence full support by the public (Page & United States,2004). The accountability concept will further initiate the provisions of basic insurance covers to the people with disabilities and other disadvantaged groups in the society.

Secondly, the payment of the social security funds by the employer will save the employee some costs. With the increasing trends in the living standards of the people, such an action will increase the purchasing powers of the employees (United States & United States, 1998). This is achieved through the least burden of payments that are accrued by the employee. The overall impact of this action is embedded in the fact that low levels of salary deductions tend to increase the purchasing powers of the employees hence their abilities to satisfy their basic and secondary wants. The action will have some positive spill-over effects on other sectors of the economy. For instance, the trade and commerce sectors will be positively affected by the increased purchasing powers of the employees in the economy. Thirdly, the action of the employer paying the funds will act as a time-saving tool thereby increasing the productivity of all the sectors of the economy (Auerbach, 1997). The merit is center-staged on the fact that individual employees will not engage in queuing processes in social security offices to remit their funds. With such doings, the employees will be in a position of concentrating on their duties thereby increasing their productivity. Further on, the low income earners and the minorities willnot be willing pay hence lack of various insurance covers and savings at their older ages (Moore, 2000).

Conclusion

The demand by the politicians that the social security funds should be paid by employers rather than the employees should be initiated. This is because the action has a lot of merits. The action will prompt time-saving, cost-saving and accountability. Each of the advantages has a significant influence on the various economic, political and social attributes. Higher productivity levels and improved standards of living will be ultimately realized.

References

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Auerbach, A. J. (1997). Fiscal policy: Lessons from economic research. Cambridge, Mass. [u.a.: MIT Press.

Moore, K. L. (2000). Partial Privatization of Social Security: Assessing Its Effect on Women, Minorities, and Lower-Income Workers. Missouri Law Review, 65.

Page, B. R., & United States. (2004). Administrative costs of private accounts in Social Security. Washington, D.C..

United States, & United States. (1998). Social Security financing: Implications of government stock investing for the trust fund, the federal budget, and the economy : report to the Special Committee on Aging, U.S. Senate. Washington, D.C. (P.O. Box 37050: The Office.

United States. (1997). Financing Social Security. Baltimore, Md.: Social Security Administration.