Social Security tax

Definition of "Social Security tax"
  1. A part of the Federal Insurance Contributions Act tax, calculated as 12.4% of a person's net earnings, split equally between the individual and their employer up to a yearly limit
How to use "Social Security tax" in a sentence
  1. Employers are required to withhold the Social Security tax from their employees' salaries.
  2. Reaching the yearly limit means no more Social Security tax is deducted from your earnings for the rest of the year.
  3. The Social Security tax funds the country's social welfare programs.
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