The payroll tax for Medicare is Medicare. The payroll tax for Social Security is FICA.
Social security tax
Check your annual OPM annuity statement -- there is no payroll tax. A payroll tax feeds the Ponzi scheme we commonly call Social Security. For the last few years the payroll tax was reduced by 2% but that just means Social Security will become broke even faster.
Payroll tax is the tax that is collected from employers to pay for government benefits for their staff. These include programs like unemployment, disability and social security.
The government provides medicare and social security through a payroll tax.
The payroll tax for a small business is 6.25% for Social Security ant 1.45% for Medicare. This tax is required regardless of how many people you hire or your revenue generated.
A one-year reduction in Social Security withholding from individuals (not from their employers) was included in the Tax bill that was passed by Congress at the end of 2010. The lost tax income to Social Security will supposedly be paid to the Social Security Trust fund out of general tax revenues.
Social Security is funded by payroll taxes which is also called as Federal Insurance Contributions Act Tax (FICA).
FICA stands for a payroll tax used to fund the Social Security system.
No, educators don't pay into the Social Security payroll tax. Instead they pay into the Teacher Retirement System. Since they don't contribute to Social Security they can not draw from it even though they meet the age requirements. So this payroll hike will not affect their paychecks.