Social Security tax,
Definition of Social Security tax:
Social Security tax is the tax levied on both employers and employees to fund the Social Security program. Social Security tax is collected in the form of a payroll tax mandated by the Federal Insurance Contributions Act (FICA) or a self-employment tax mandated by the Self-Employed Contributions Act (SECA).
(in the UK) monetary assistance from the state for people with an inadequate or no income.
The Social Security tax pays for the retirement, disability, and survivorship benefits that millions of Americans receive each year under the Old-Age, Survivors, and Disability Insurance (OASDI) Program—the official name for Social Security in the U.S.
This tax was created under the Federal Insurance Contributions Act (FICA). The amount taken from a contributors earnings covers support for retired workers, those on disability, and individuals who are entitled to survivorship benefits, which provide financial support for individuals of a deceased family member who was the primary breadwinner.
Synonyms of Social Security tax
Social security, Benefit, State benefit, Benefit payment, Public assistance
How to use Social Security tax in a sentence?
- In 2020, the Social Security tax rate is 12.4%, divided evenly between employers and employees, on a maximum wage base of $137,700.
- Social Security taxes fund the retirement, disability, and survivorship benefits that millions of Americans receive each year from the Social Security Administration.
- She was living on social security.
- Self-employed individuals pay the employer and employee portions of Social Security tax, but only on 92.35% of net business earnings.
- Certain groups, including some nonresident aliens and members of religious groups with specific views, are exempt from paying Social Security tax.
Meaning of Social Security tax & Social Security tax Definition