Please put it in simple terms!
2007-10-24 14:39:55 · 3 answers · asked by DAWG94 3 in Business & Finance ➔ Taxes ➔ United States
You pay 7.65% of your salary up to a certain limit (a little over 90K, then it drops to a lower percent) for coverage under social security and medicare. Your employer pays a matching amount. If you are self-employed you pay both halves. The social security side funds not only retirement, but also disability.
2007-10-24 14:59:32 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
Employee portion
Social Security tax 6.2% of the first $97,500 in wages for 2007 and the Medicare tax is 1.45% of all wages.
Self employed (or independent contractor) pays two times the amounts for an employee.
2007-10-24 23:13:21 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
You're paying the Social Security retirement and disability for people currently collecting Social Security retirement and disability. You're also paying for their medical care.
That is the very short and simple of it.
2007-10-25 00:49:40 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋