Social Security Tax

Social Security Tax

Social Security Tax means:
the old-age, survivors, and disability (OASDI) portion of the tax assessed on compensation and self-employment earnings under the Federal Insurance Contributions Act. Social Security tax is an amount paid by individuals during the period in which they earn wages for purposes of providing them with benefits when they retire. In 1994, the OASDI tax was 12.4% of earnings up to $60,600. An employer is required to withhold one-half of the tax (6.2%) from employee wages and to make a matching contribution of the remaining half. Employer-withheld and matching taxes are deposited at regular intervals with the U.S. Internal Revenue Service. Provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Self- employed individuals paid the entire 12.4% tax, which they include with their quarterly estimated income tax payments. Also known as the Federal Insurance Contributions Act (FICA) tax. See also Medicare tax. Former IRC (check if this IRC provision is current here) §§3101 and 3111.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Social Security Tax for Employers Issue

You may find information about Social Security Tax for Employers in this Tax Platform of the American Encyclopedia of Law.


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