Giving students an environment where they can explore learning in new and innovative ways is an exciting part of our future. But the main focus of this vision is that kids do matter...all children, everyone of them has the ability and opportunity to learn. We provide that in the Madison schools and look forward to a great future of success.
Image source: Getty Images. Social Security tax is one part of the Federal Insurance Contribution Act (FICA) tax, and it is assessed at a rate of 12.4%. This is split evenly between the employee and employer, and it applies to earned income up to $118,500 for 2016 -- resulting in a maximum Social Security tax of $14,694. The remainder of FICA tax goes to Medicare.
The payroll taxes withheld from your wages are not deductible, either from federal or any state income tax. For the year 2012, the Social Security payroll tax rate stood at 4.2 percent for employees, and 6.2 percent for employers. If you are self-employed, you pay both employee and employer shares through self-employment taxes, which you calculate using Form 1040, Schedule SE. The money funds the Social Security trust account, which is used to pay retirement and disability benefits to qualified applicants.