0
What happens to money when it is withheld from your paycheck for social security?
Wiki User
∙ 13y ago
The taxes are sent to the taxing authorities. For example, your federal income taxes and Social Security taxes are sent to the IRS. State taxes are sent to your state tax department. Other deductions are sent to the appropriate party. Charity deductions are sent to the charity. Insurance deductions are sent to the insurance company (or kept by your employer if they are self-insured). Savings deductions are sent to the savings institution. 401k deductions are sent to the 401k trustee.
Wiki User
∙ 11y ago
cutie_kate18
Wiki User
∙ 13y agoIt is sent to the United States Treasury. Part of your 7.65% FICA withholding is earmarked for Social Security (6.2%); part is used to fund Medicare Part A (1.45%) insurance.
The money is recorded as a credit to the Social Security Trust fund and then it is spent for whatever the Treasury needs it for at the moment. The money is not supposed to be used in the general fund; however, the Social Security Trust Fund has loaned money to other parts of the federal government in return for something similar to I.O.U.s.
*It is redistributed as cash transfers to elderly and disabled people.
Add your answer:
Earn +20 pts
What is withheld from Social Security Benefits?
Sometimes, people are surprised to find out that their social security benefits are taxable. For the person who may only make $30,000 a year and receive social security benefits, getting taxed on these benefits can be a huge burden. To avoid any unfortunate surprises, some tax planning is required on the part of an individual. You can prepare for any taxes on social security benefits by having a portion of your social security benefits withheld from a paycheck. There are different amounts of money you may choose to have withheld from a paycheck. You may choose to have anywhere between 7% to 25% of your benefits withheld.
Do you still have Social Security deducted from your check if working and collecting Social Security?
Yes. If you work after retirement, you will still have contributions to Social Security and Medicare (FICA) withheld from your paycheck at the same rate as before retirement.
Does your employer still withhold Social Security if you are retired and collecting Social Security?
Yes. If you work after retirement, you will still have contributions to Social Security and Medicare (FICA) withheld from your paycheck at the same rate as before retirement.
Identify two expenses in the income statement?
On a typical paycheck in the United States, you will see income taxes withheld and Medicare/Medicaid/Social Security taxes withheld.
What is the percentage of income that will be withheld from any employees paycheck for social security and medicare taxes?
For 2012, the Social Security (FICA) deduction is 6.2%; the Medicare deduction is 1.45%, for a total of 7.65%. The employer pays the same percentages.
What is the total percentage of income that will be withheld from any employee's paycheck for Social Security and Medicare taxes?
For 2012, the Social Security (FICA) deduction is 6.2%; the Medicare deduction is 1.45%, for a total of 7.65%. The employer pays the same percentages.
How do you pay into Social Security?
Social Security is deducted from a worker's paycheck by their employer.
Is social security still withheld from a paycheck at age 65?
Yes it would be the same if you were working at age 100 and earned income from providing your services. You would still be required to pay the social security and medicare taxes on the earned income.
Can you stop social security payments from coming out paycheck?
No. You cannot "opt out" of social security.
What percentage of your paycheck is withheld for fica over 90000 dollars?
Employee amount for the Medicare tax is 1.45% on all wages. For the OASDI (SS) amount the amount of tax is 6.2% equal 7.65% total up to the 106800 of wage limit amount for the 2009 and 2010 tax year. When you have one employer the amount of FICA for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60
What is a mandatory deduction in paycheck?
social security
What is the total percentage of income that will be withheld from any employee paycheck for social and Medicare taxes?
7.65
