What tax is deducted from a worker's paycheck to fund social security and medicare?
Social Security is funded by FICA; Medicare is funded by Medicare tax.
In most years, your employer will deduct the following from your paycheck: Social Security: 6.2% of your gross pay Medicare: 1.45% of your gross pay However, in 2011 Obama signed into a law a "payroll tax holiday" as part of the continued effort to stimulate the economy. For 2011 only, the social security tax coming out of your paycheck is 4.2% instead of 6.2%, meaning that this year you will take home more money than…
per Publication 15 (Circular E) for 2009: Social security and Medicare tax for 2009. Do not with- hold social security tax after an employee reaches $106,800 in social security wages. There is no limit on the amount of wages subject to Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $1,700 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,500…
If you become disabled on the job and are collecting workers compensation does social security pick up or is workers compensation payments for life and are they taxed?
This is a complex questions. Workers' compensation payments are seldom life-time benefits, they normally are for a fixed period of time. Workers' compensation benefits are not taxed. You can file for social security benefits and medicare while you are receiving workers' compensation. Social security may claim an offset (reduction in benefits) for the amount you receive from workers' compensation. The amount paid by social security is taxed.
FICA has nothing to do with workers' comp. FICA are the deductions for Social Security (Federal Insurance Contributions Act) and Medicare. State law usually requires workers' comp for businesses over a certain size. It covers work-related medical expenses. So you have to find out if your employer is required to have insurance, and if the harm you suffered is work-related. In other words, consult a WC lawyer.