Social Security tax
- 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
- Employers are required to withhold the Social Security tax from their employees' salaries.
- Reaching the yearly limit means no more Social Security tax is deducted from your earnings for the rest of the year.
- The Social Security tax funds the country's social welfare programs.