What is Social Security?

In America, social security is known as a program of old age, survivors and disabilities insurance (OASDi). It is a social insurance program allowed through specific wage taxes referred to as the Federal Insurance Act (FICA). According to the law, employers and employees are obliged to pay taxes to the government. Part of this tax payment is the detention of social security. These are the most common advantages of the private sector pension plans. They are also financed from taxes due from employees and employers. The employer and the employee are responsible for the own part of the Social Security deduction.

The employee's social security tax is detained from its payment at each date of payment. The employer is responsible for paying the entire amount of taxes of social security. For each year, Fico employee's contribution is evaluated, and receives credit from the ECRITY Social Socity for these wages for this year.

In addition to detention of social forFica safety imposed employers and employees of Medicare tax. As a result, Fica is composed of Medicare and Social Security. The Medicare program exists primarily to provide health benefits to pensioners.

The employer and employee must pay separate wage taxes to finance the Medicare program. Although the employee's share of taxes is deducted from his payment, the employer is responsible for ensuring that this deduction occurred in time and accurately. In fact, the employer pays the share of Fico and employees.

There are several categories of workers who are exempt from paying social security taxes. State or employees of local administration who participate in the alternative pension system implemented by their employer are exempt. So are university students employed in the framework of federal work studies, postdOctorate scientists and assistants of teachers or research assistants. Individuals in these assistance positions must also be postgraduate students who receive a scholarship in the fulfillment of these duties or on the community. Ministers or individuals providing a similar religious service provided that they have an objection that is morally and religiously inclined to their distrust in public insurance, can also be exempt.

Federal deductions of the employee's income tax are based on his status of his submission and the amount of contributions he claims. This flexibility sometimes allows him to control the amount of taxes detained from his payout. Social security deduction cannot be adjusted because the government has imposed a fixed amount; The employer must pay these taxes or to be subjected to stalled sanctions.