Isn't everyone working in private industry required to have SS deducted from their wages?

Answer 1

yes, although railroads have the railroad retirement system, which is the equivalent to social security. Federal and state employees usually are in their own retirement and do not contribute to social security, also (at least in Massachusetts) city/town/country employees (including teachers) don't contribute to social security either. They are usually in the state retirement system. They may not pay social security, but they do pay into medicare.

Social secutity withholding is 6.2% of your paycheck, and medicare withholding is 1.45% of your paycheck, and your employer matches the amounts. Social security withholding stops when your social security wages hit $97,500 (that's the limit for 2007), but medicare has no wage limit.

Answer 2

On earned income everyone has to pay social security tax of 6.2% (up to income limit of around $95,000) and 1.45% medicare tax. Your employer also pays an equal amount.

No social security/medicare tax is charged on unearned income like interest income and capital gains.

Self employed income is earned income, and subject to 2 times (6.2 % + 1.45%), which is both the employee and the employer's share.

Answer 3

Yes, though there are some exceptions for employees covered by plans that provide similar benefits such as the railroads and some teachers.

Answer 4

You can stop it but, shoulds anything happen to you to which you are disabled, you won't be able to get Social Security Disability.

Answer 5

Yup.
And the employer must match it.