Social Security tax
A portion of the FICA (Federal Insurance Contributions Act) tax that is 12.4% of an individual's net earned income. The employee's share of the Medicare tax is 6.2% of wages up to a certain limit (called the Social Security Wage Base) that increases each year. The employer's share of the Medicare tax is 6.2% of an employee's wages up to that limit.
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Category: Business, LLCs & Corporations → Business Tax & Deductions
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Nolo’s Plain-English Law Dictionary. . 2009.


social security tax
A payroll deduction based on gross wages paid; this amount is matched by the employer as required by the Federal Insurance Contribution Act (FICA).

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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