| Social Security Taxes |
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We offer some answers to frequently asked questions about Social Security taxes and provide links and resources to additional information that is available directly from the Social Security Administration. |
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The Social Security Act was originally signed into law back in 1935 by President Franklin D. Roosevelt. The Social Security program provides US workers and eligible members of their families with benefits when they retire; the program can also provide benefits if workers become disabled and also when they die. The program was updated in 1983.
You pay 7.65 % of your salary to taxes for social security taxes and Medicare taxes. The social security tax is 6.2 % up to $106,800 and the Medicare tax rate is 1.45 % (2010). Your employer also pays 7.65% of your salary so essentially you and your employer are splitting the cost of social security taxes. If you are self-employed then you bear the full burden of paying social security and medicare taxes, or 15.3% of your net earnings. If you find that you owe back taxes, you will want to recover and organize any previous records that may help you establish the tax calculations for the period in question. This includes previously filed tax returns for previous tax years, quarterly tax payment receipts, W-2's, expense receipts, and any relevant tax calculation worksheets. |
| Important |
| The content of this site is not intended to be a substitute for professional tax advice rendered by a CPA, attorney, or an Enrolled Agent. Fixbacktaxes.com provides information about back taxes which is intended for educational purposes only. An Enrolled Agent is a tax professional federally licensed to represent taxpayers before the IRS. |
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