Taxes and Tax Preparation
Retirement Planning
Social Security

Are Social Security SSI and SSDI all funded through fica and self employment taxes?

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Wiki User
2011-09-12 14:43:13

I'm trying to read through the wording..the terms may not be

properly used.

Remember the political campaigns saying they wanted the SS taxes

to be in a "lock box"? I think that's what your asking, at least in

part.

SS, etc are intended to be fully funded by the payroll taxes.

They were not expected to use other taxes, nor were the funds

collected to be used for anything else. So, what happens when there

is a projected shortfall, on either side of the equation?

Politics..change the equation or at least the projection!

Self employment tax is not a separate tax...it just means the

portion of FICA that would otherwise be required to be paid by an

employer is paid by the self employed person.."his business"...if

you will. The tax paid totals the same if employed by someone else

or self employed.


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