U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the:

U.S. Social Security and Canadian Pension taxes are planned savings/retirement funds, and the money is collected by the:

• A. City council
• B. State government
• C. County government
• D. U.S. and Canadian governments

Answer: (D)

These programs are national social insurance schemes funded and run by the federal governments. In the United States, Social Security is financed through payroll taxes collected at the federal level (FICA) and managed by the federal government. In Canada, the Canada Pension Plan is funded similarly through contributions collected by the federal government (via the Canada Revenue Agency) and administered nationwide. Because they operate across the whole country, the funds come from and go to the U.S. and Canadian governments, not local or state authorities. Local entities—city, county, or state governments—handle local services, not these nationwide retirement programs.

These programs are national social insurance schemes funded and run by the federal governments. In the United States, Social Security is financed through payroll taxes collected at the federal level (FICA) and managed by the federal government. In Canada, the Canada Pension Plan is funded similarly through contributions collected by the federal government (via the Canada Revenue Agency) and administered nationwide. Because they operate across the whole country, the funds come from and go to the U.S. and Canadian governments, not local or state authorities. Local entities—city, county, or state governments—handle local services, not these nationwide retirement programs.