What is social security tax?

[jasminsain]

What is Social Security tax and why is it deducted from every paycheck? I know it’s tied to retirement benefits, but I’m not clear on how the tax works, who pays it, and whether the rate is the same for everyone. Can someone break down the basics?

 

[deepak]

Social Security tax is a mandatory payroll tax deducted from your salary to fund government benefits for retirees, disabled individuals, and survivors. Both employees and employers contribute a percentage of wages. This tax ensures financial support for people when they retire or cannot work due to disability.

 

[kebido]

The Social Security tax is a mandatory payroll tax that is taken out of your paycheck in order to pay for government benefits for survivors, retirees, and people with disabilities. A portion of wages is contributed by both employers and employees. People who retire or are unable to work owing to a disability will receive financial support thanks to this tax.

 

[amara]

In order to fund government benefits for survivors, retirees, and individuals with disabilities, the Social Security levy is a mandated payroll tax deducted from your paycheck. Both employers and employees contribute a percentage of earnings. This tax would provide financial assistance to individuals who retire or are unable to work due to a handicap.

 

[peterkavinsky]

Social security tax is a mandatory payroll tax collected from employees and employers to fund government programs that provide retirement, disability, and survivor benefits.

 

[Shane Warne]

Social Security tax is a payroll tax in United States that is paid by both employees and employers- it pays retirement, disability and survivor benefits. It is 6.2 percent on wages and a yearly wage limit on the wages of an employee and the employer (12.4 percent) each.

 

[Lucas]

Social Security tax is a U.S. payroll tax taken from your paycheck to fund Social Security benefits, such as retirement, disability, and survivor benefits.