Like an IRA, a SEP is not a qualified retirement plan. The second idea that I am going to describe is the required benefits. Social Security as stated by the book is, much like a government insurance plan. It provides income to individuals who experience a loss of earnings due to retirement, unemployment, disability, or the death of a person supporting them if they are a dependent. The Social Security program is financed through a tax levied against the earnings of employees.
Employers match contributions made by employees.
This is one of the taxes that we gripe about but is something that many people need. The second required benefit is the Unemployment Compensation. Unemployment Compensation is described as, Employees who are laid off from employment covered by the Social Security Act may be eligible for unemployment compensation for as long as 26 weeks. Unemployment Compensation varies among states. The third aspect is Workers Compensation.