Social Insurance Taxes (social Security)
Many countries (and/or subdivisions thereof) have social insurance systems that require payment of taxes for retirement annuities and medical coverage for retirees. Most such systems require that employers pay a tax to cover such benefits. Some systems also require that employees pay such taxes.
Where the employees are required to pay the tax, it is generally withheld from the payment of wages and paid by the employer to the government. Social insurance tax rates may be different for employers than for employees. Most systems provide an upper limit on the amount of wages subject to social insurance taxes.
Read more about this topic: Withholding Tax
Famous quotes containing the words social, insurance and/or taxes:
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—Agnes E. Meyer (1887–1970)
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—Lamar Trotti (1898–1952)