Social Security and Medicare Taxes
Federal social insurance taxes are imposed equally on employers and employees, consisting of a tax of 6.2% of wages up to an annual wage maximum ($106,800 in 2010) for Social Security plus a tax of 1.45% of total wages for Medicare. For 2011, the employee's contribution was reduced to 4.2%, while the employer's portion remained at 6.2%. To the extent an employee's portion of the 6.2% tax exceeds the maximum by reason of multiple employers, the employee is entitled to a refundable tax credit upon filing an income tax return for the year.
Read more about this topic: Taxation In The United States, Payroll Taxes
Famous quotes containing the words social, security and/or taxes:
“The weakness of modern tragedy ... [is that] transgression against the social code is made to bring destruction, as though the social code worked our irrevocable fate.”
—D.H. (David Herbert)
“The three great ends which a statesman ought to propose to himself in the government of a nation, are,—1. Security to possessors; 2. Facility to acquirers; and, 3. Hope to all.”
—Samuel Taylor Coleridge (1772–1834)
“The contented and economically comfortable have a very discriminating view of government. Nobody is ever indignant about bailing out failed banks and failed savings and loans associations.... But when taxes must be paid for the lower middle class and poor, the government assumes an aspect of wickedness.”
—John Kenneth Galbraith (b. 1908)