Social Security

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Related to Social Security Tax: Medicare Tax, Federal income tax

Social Security

A program of the United States federal government that provides income to disabled and (especially) elderly people. That is, persons who have paid into the Social Security system for a certain period of time are eligible to receive what amounts to a government pension in retirement or in the event of disability. It is paid out of the Social Security trust fund and is financed through FICA taxes. Because Social Security is the single largest expense of the federal budget, periodic attempts are made to wholly or partly privatize Social Security, though opponents claim that doing so would make the American social safety net less secure. See also: SSI, TANF, SCHIP.

Social Security.

Social Security is a federal government program designed to provide income for qualifying retired people, their dependents, and disabled people who meet the Social Security test for disability.

You qualify for retirement benefits if you have had at least the minimum required payroll tax withheld from your wages for 40 quarters, the equivalent of 10 years.

The minimum for each quarter is set by Congress and increases slightly each year. You earn credits toward disability coverage in the same way.

The amount you receive in Social Security retirement benefits, up to the annual cap, is determined by the payroll taxes you paid during your working life, which were matched by an equal tax paid by your employers. Some of your benefit may be subject to income tax if your income plus half your benefit is higher than the ceiling Congress sets.

References in periodicals archive ?
However, the government introduced a 10% social security tax surcharge for high wages: all amounts in excess of RUB512,000 per annum are now subject to 10% tax instead of 0% before.
At the end of World War II, Social Security tax collections amounted to 0.
salary or both salaries are not subject to home country social security tax, the totalization agreement will not apply, and the U.
If she decreases her wages to the point that little or no compensation is subject to Social Security tax, she can become ineligible for benefits under the system.
The sum of J's regular tax and Social Security tax is $1,650.
Another way to save money on taxes, said Zelenkofske, is to check your Social Security tax withholdings if you are being compensated from more than one job.
Under such a plan, your employer will withhold the amount you specify (not more than $5,000 a year for dependent and child care) from your wages; these funds will not be subject to income tax or Social Security tax withholding.
Based on the definition of excess employer's Social Security tax and the restriction in Sec.
The FairTax proposal includes specific protections for these Americans, including ending the narrow, regressive Social Security tax, ending income taxes, and beginning a rebate to zero all federal taxes for all Americans (with a legal Social Security number) up to the poverty level.
However, wages subject to Social Security tax are increased to $84,900 and there still is no upper limit on Medicare tax.
But while the most attention will be focused on the privatization issue, the biggest scare is in a little mentioned idea - raising the cap on the Social Security tax.

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