Social Security Tax
Social security tax and social security benefits are part of the system where working individuals pay into the social security system in order to receive payments during retirement or other periods when they cannot work. Most working people split the costs of social security with their employers. The self-employed also pay social security tax. Many people recognize this tax as the’FICA’ line on their pay stub. This stands for the’Federal Insurance Contributions Act’ and the Social Security and Medicare taxes levied under it are used to fund the Social Security system.
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