Final answer:
Sandy's widow is entitled to survivor benefits because Sandy was a fully insured worker according to Social Security guidelines. Workers, part-time or otherwise, contribute to Social Security and Medicare through the Federal Insurance Contributions Act, and survivor benefits are available to the survivors of workers who were fully insured.
Step-by-step explanation:
The Federal Insurance Contributions Act (FICA) is essential for employees at any corporation to understand. This federal law mandates that all workers, including those at ABC Corporation, contribute a percentage of their income to fund Social Security and Medicare. These social insurance programs provide benefits such as retirement, disability, and survivor benefits. The key to unlocking these benefits is being 'fully insured' based on the duration and contribution to the programs.
Regarding the options given:
- A) Mary, being a part-time employee, could still be eligible for survivor benefits if the deceased worker was fully insured.
- B) If John is an uninsured worker, he would not be entitled to survivor benefits himself, but this does not affect potential survivors if he were insured.
- C) Amanda, as a fully insured worker, would generally be eligible for survivor benefits herself, or her survivors would be after her demise.
- D) Sandy's widow is entitled to survivor benefits if Sandy was a fully insured worker who passed away. This is in line with the Social Security benefits that provide for the survivors of qualifying workers.
Therefore, the correct statement for Newton to understand is option D: Sandy's widow is entitled to survivor benefits given Sandy's status as a fully insured worker.