What are the different types of social security taxes?
Social security taxes are paid by US workers and their employers to finance the old age program, survivors and insurance for disabilities (OASDi). The program, which also includes several social security initiatives, helps pensioners, unemployed individuals, children of the deceased workers and individuals who receive help from Medicare, Medicaid, Social Care and Health Insurance Program for Children. Taxes for these programs, which are commonly referred to as social security taxes, also require separate Medicare tax, which is included in the total rainfall established Act on Insurance Contributions (FICA). Individuals regularly employ half of their social security taxes, while their employers pay the other half, but self -employed individuals pay the whole tax because both employees and employers. These two taxes are usually detained together from the payout of the employee but Aopat considered to be different and separate parts. For 2010, the total social security tax was 12.4% of the total income, while Medicare's tax was 2.9% of the total income. The workers were responsible for 6.2% of social security income and 1.45% of the income for Medicare, while their employers paid the remaining half for each tax.
The 2010 tax relief Act caused the 2011 social security tax to reduce by 2%, but the Medicare tax remained the same. In 2011, workers are responsible for 4.2% of social security income, while employers are responsible for 6.2%. Medicare's tax remains 1.45%for each side.
self -employed individuals must pay both parts of social security taxes as they take over the role of employees and employers at the same time. However, the tax relief Act still applies, so self -employedIndividuals pay a total of 10.4% of their income for security in the area of security and 2.9% of their income for the Medicare tax for 2011. In 2010, 15.3% of the combined Medicare and Social Security taxes paid a self -employed workers.
Social security taxes are separate from standard income taxes. The rate for which the individual is taxed for federal income tax varies according to the level of income, but all workers pay the same percentage for social security taxes. In addition, for 2010 and 2011, the maximum income is to be taxed for social security and Medicare, $ 106,800 (USD). Unlike normal income tax, individuals will not be taxed for any additional money obtained after the tax limit is reached.