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Social Security in the US is a social insurance program funded by payroll deduction taxes via the Federal Insurance Contributions Act (FICA)
Among other things SS tax helps fund the following
Federal Old Age, Survivors and Disability Insurance
Unemployment Insurance
Temp Assistance to Needy Families
Medicare
Medicaid
State Children's Health Insurance Program (SCHIP) (kind of a hot topic as of late)
SSI - Supplemental Security Income
Wiki User
∙ 16y ago
Wiki User
∙ 13y agoTo pay the Old Age Survivor and Disability Insurance benefits to qualified taxpayers that have worked and had the qualifying earned income and reported the income and paid the social security and medicare tax amounts over the years as taxpayers are required to do.
Wiki User
∙ 11y agoSocial security taxes help pay for the daily costs of an elderly person that has once earned a wage and also any with a disability. It also helps low or no income residents, and military personnel.
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What type of tax is levied on income that will will be used in retirement?
Social Security Tax
What type is tax is levied on income that will be used in retirement?
Social Security Tax
Which type of tax is used to finance the social security program in the US?
payroll tax
What was the Social Security tax for 2001?
The Social Security tax cap for 2001 was $80,400.
does Mississippi Tax Social Security Income?
No, the state of Mississippi does not tax Social Security benefits at the state level. Therefore, Social Security income is not subject to Mississippi state income tax.
Does Massachusetts tax social security?
No. Massachusetts is not one of the fourteen states that tax Social Security benefits.
Do you pay social security tax when drawing social security?
yes
Do kids pay social security tax?
no im pretty sure you have to be 18 to pay social security tax
Are social security taxes state taxes?
Social Security is a federal program. It is a federal "tax" not a state tax.
How much does social security cost per year?
For 2008, the maximum social security tax withholding for an individual is $6,324, the tax on $102,000. For 2009, the maximum social security tax withholding for an individual is $6,622, the tax on $106,800.
What example of a payroll tax?
Social security tax
What was the Social Security tax cap for 2006?
The Social Security tax cap for 2006 was 6.2% of the first $94,200 of wages.
