A payroll deduction based on gross wages paid, usually noted on the paystub as FICA. This is the amount paid to Social Security and matched by the employer.
Federal tax levied equally on employers and employees, used to pay for Social Security programs.
Provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the "Federal Insurance Contributions Act" (FICA) tax.
This money pays retirement and disability benefits. Your employer withholds 6.2 percent from your wages and pays a matching dollar amount for a total Social Security payment that totals 12.4 percent of your earnings.
A payroll deduction based on gross wages paid; this amount is matched by the employer as required by the Federal Insurance Contribution Act (FICA).
Tax sent to the Social Security Administration on your behalf. This amount is 6.2% of wages for employees and 12.4% of net profit for self-employed taxpayers.
a tax used to fund a program of the US government that gives money to elderly people. The elderly receive funds because the federal government has deducted money from each of their paychecks during the course of their working lives. The money taken out of their paychecks has been deposited into the Social Security fund. Employers, too, deposited money to this fund on behalf of each employee. When people reach a certain age, they become eligible to receive Social Security payments. The government mails checks each month. These payments help the elderly live, now that they are no longer working full-time. The money they receive is drawn out of the Social Security fund, where it has been earning interest for many years.
A tax of 12.4% of the wages of an employee in the U.S. for wages up to $87,000 (for 2003). Half is paid by the employee through payroll withholding and half is paid by the employer.
A tax paid by workers and employers on wages earned. The taxes support the benefit programs under the Social Security System. (H)
Since inception, the Social Security system has been funded by a Social Security Tax paid by both employers and employees. These levies are deposited in trust funds for investment. At various optional retirement ages, employees may qualify for fixed income payments based on marital status, quarters employed, and wages earned. The self-employed worker has a different contribution schedule, but has equal treatment on all distributions at retirement or disability.