Mandatory benefits are like when someone gives you a gift, but they are also holding a gun to your head. You just CAN’T say no. You have to get these benefits from your employer because the federal and state governments demand it by law. A portion of money is automatically taken out of your paycheck during each pay period in order to pay for these programs.

These benefits are designed to help you or someone else with their finances when things go wrong. Your money goes into a pool of money that is used for the people that need it, which may be you one day. There are eight programs that you should learn about.

They include:

• Social Security: Provides retirees (age 65+) with a check based on their contributions when they were working
• Supplemental Security Income: A program for retired, blind and disabled people with little to no income, it is determined through an application process
• Medicare Part A: covers eligible individuals for hospital visits
• Medicaid: Covers medical expenses for individuals and families with low-income and certain disabilities
• Social Security Disability Insurance: Insurance to cover you when you are injured, it helps get you back on your feet after a doctor has deemed you disabled.  Usually takes 5-months to receive checks
• Workers Compensation: It covers expenses for injuries that happen on the job
• Unemployment Insurance: Provided income to people who were laid off and are actively seeking a new job. Quitters need not apply
• Public Assistance: It is welfare, there are many different programs covered by welfare, they do however, depending on which state you live in.  Each state sets up their own programs

You’ll see some of these programs coming out of your paycheck bucketed into the FICA component (which you may or may not see on your pay stub).  In this FICA clubhouse resides Social Security, Supplemental Security Income, Disability Insurance, Medicare and Medicaid.