What is Social Security Tax ?

The Federal Insurance Contributions Act (FICA) mandates that all employers withhold two taxes, including the Social Security tax. The Medicare Tax is the other.

Most employees, companies, and self-employed individuals are required to pay the Social Security tax, which is a portion of gross wages, in order to support the government program. The social security tax is waived for several taxpayer categories. Employers are responsible for deducting the appropriate amount of Social Security tax from each employee’s paycheck stubs and sending it to the federal government on time. There may be severe repercussions for doing otherwise.