Which of the following is a contributory program?

Which of the following is a contributory program?

• A. Social Security
• B. Temporary Assistance for Needy Families
• C. Medicaid
• D. Food Stamps

Answer: (A)

Contributory programs are funded by payroll taxes paid by workers and employers, with benefits tied to those contributions. Social Security is financed through payroll taxes under the FICA system; during work years, both workers and employers contribute, and retirement and other benefits are paid from those contributions and ongoing payroll funding. The other options rely on general revenues or state funds rather than dedicated payroll taxes, so they are not contributory: TANF is funded by general tax revenues and federal block grants to states; Medicaid combines federal and state funds largely from general revenues; SNAP (Food Stamps) is financed with general funds and is means-tested.

Contributory programs are funded by payroll taxes paid by workers and employers, with benefits tied to those contributions. Social Security is financed through payroll taxes under the FICA system; during work years, both workers and employers contribute, and retirement and other benefits are paid from those contributions and ongoing payroll funding.

The other options rely on general revenues or state funds rather than dedicated payroll taxes, so they are not contributory: TANF is funded by general tax revenues and federal block grants to states; Medicaid combines federal and state funds largely from general revenues; SNAP (Food Stamps) is financed with general funds and is means-tested.