Social Security tax

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.
Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances
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Category: Business, LLCs & Corporations → Business Tax & Deductions
Category: Employment Law & HR → Employee Rights
Category: Personal Finance & Retirement → Taxes → Tax Audits

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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  • Social Security Act — A law enacted by President Franklin D. Roosevelt in 1935 to create a system of transfer payments in which younger, working people support older, retired people. Under the act, the government began collecting the Social Security tax from workers… …   Investment dictionary

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  • SOCIAL SECURITY AND WELFARE — SOCIAL POLICY In the first three decades of statehood through the end of the 1970s Israel acquired the basic features of a modern welfare state. This meant that Israel succeeded in developing a broad network of social services that included… …   Encyclopedia of Judaism

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