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 earth is ready, the time is ripe, for the authoritative expression of the feminine as well as the masculine interpretation of that common social consensus which is slowly writing justice in the State and fraternity in the social order.”
—Anna Garlin Spencer (1851–1931)
“Of course we will continue to work for cheaper electricity in the homes and on the farms of America; for better and cheaper transportation; for low interest rates; for sounder home financing; for better banking; for the regulation of security issues; for reciprocal trade among nations and for the wiping out of slums. And my friends, for all of these we have only begun to fight.”
—Franklin D. Roosevelt (1882–1945)
“I thought that’s what this war was about. Making people pay taxes when they didn’t have no say so about it.”
—Lamar Trotti (1898–1952)