Who is this OASDI, and why are they taking all my money?

Question

OK I am talking about OASDI/EE and MED/EE. I know that the first is something to do with Social Security, and the second is medicare or medicaid. I know that everyone pays these, but I am a little confused.

I work for the State of Connecticut, through the college I attend. I only work 12 hours a week (except the Summer, which I am working anywhere between 20-32 hours). I just got my second summer paycheck, and both of these things are being taken out, which they never have before. I have been working here for three years, and no pay raise sense before last Summer. All that was being pulled out then was federal and state, until this check. So what changed, and should it have? It only adds up to about $45, but I don't make very much anyways. I need to save during the summer because I make so little in the semester. Anyone with REAL answers, thank you in advance.

Answer 1

Social security tax is made up of 2 parts. OASDI is the social security part - it's 6.2% of your gross pay and you pay that until your annual gross hits $97,500 this year, I believe. Then next year you start over at zero and the limit increases. The medicare part is 1.45% and that comes out of all your pay, no matter how much you make. They always should have been taking that tax out. You will pay these taxes on any paycheck job until you retire/die or the Social Security system is changed.

Answer 2

OASDI/EE is Social Security. MED/EE is Medicare. They are sometimes lumped together under the term "FICA" and I'll use term to save some keystrokes. (Medicaid is a state program and no taxes are directly withheld for it.)

All earned income is subject to FICA taxes. If you are paid wages from employment you are taxed 7.65% of your gross wages. If you are self-employed you pay in 15.3% of your net income for FICA taxes. Once your income hits $97,500 (for 2007) the rates drop to 6.2% and 12.9% respectively.

If you had earned income from wages and that FICA was not withheld, your employer made a serious error. All earnings from wages are subject to that tax. Most likely they were being withheld but were marked slightly differently such as "FICA" or "SS" or "Soc Sec" or "Med" or some other abbreviation. If they weren't withheld you'll need to ask your employer why they weren't withheld as they certainly should have been.

Answer 3

Just to let you know while I was in college working for the State they didnt take out FICA while I was doing work study for the University. But for some reason my senoir year they started taking it out I dont know if some legislation passed or not.

Answer 4

Dr. Deth forgot to add or until you reach the maximum amount for the year.