What is the difference between Medicail and Social Security Tax?
Medicare and social security tax have different purposes. Social security tax is deducted for retirement and disability funds. Medicare tax is deducted for health care for people aged 65 years or more. They are usually connected together on a paycheck through the Federal Insurance Contribution Act (FICA). This percentage changes according to the tax rates every year, as well as the number, for each individual. The funds deducted from the employee's remuneration are then the employer. Disputances for Medicare and Social Security Tax are reported by the Internal Revenue Service (IRS) service through federal income tax. These benefits also apply to income for those who can no longer work due to recognized disability. Current deductions of the social security of the fund's fund of those who are now retired. The percentage of the fund is held in government confidence in reservation for future use. These benefits are usually paid to spouses or children who have received socialSecurity and died. In general, they are evaluated on an individual basis. Representatives of the Social Security Department provide individual information about the potential benefits of the survivors.
Medicare tax pays the cost of the Medicare program. This health program benefits individuals aged 65 and older. The program includes hospitalization and about 80% of all treatment expenses, except for the benefits of prescription. You can add an optional additional plan to this program, although this program can carry additional costs. The additional program is worth what Medicare does not.
All these earnings income are obliged to pay both Medicare tax and social security taxes. Each of them is government operation and employees tax funds are used to cover the cost of programs. Many individuals gain medical care and attention through these programs. Help ensure pension dávky for individuals who do not have a different source of income.
Social security taxes are financed by a pension for those who receive the age of retirement at the age of 65 or more. This allows the government to contribute to the support of seniors and those who are affected. Medicare and social security tax provides basic services and financing to those who are no longer in the field of work field.