At 65 I applied for Social Security. There were about 50 people at the office applying, 10 people my age and the rest being young ethic minorities with a smattering of mixed Caucasians, almost all had children. The Social Security fund was unlawfully moved from a Trust fund set up by Roosevelt to the General fund by Lyndon Johnson in 1967. The fact that the give SS payments to people that never paid a cent towards it is why they have now called the fund that most Americans pay into their entire lives an Entitlement. For those of us that paid into SS and receive a trivial amount back, this is definitely not an entitlement, it is the Government, left and right, taking money that's not theirs and using it to benefit their longevity in government service.
Workers and employers pay for Social Security. Workers pay 6.2 percent of their earnings up to a cap, which is $118,500 a year in 2015. (The cap on taxable earnings usually rises each year with average wages.) Employers pay a matching amount for a combined contribution of 12.4 percent of earnings. Self-employed persons pay both the employee and employer share for a total 12.4 percent. (Half of this contribution, the employer share, is a deductible business expense for income tax purposes.) Also, higher-income Social Security beneficiaries pay federal income taxes on their benefit income, and these taxes help pay for Social Security.
During 2011 and 2012, the premiums that workers pay for Social Security protection were temporarily reduced from 6.2 percent to 4.2 percent. The lost revenue from this “payroll tax holiday”—$103 billion in 2011 and $114 billion in 2012—was made up from the government's general fund.
In 2013 the average worker made $44,888 a year, according to the Social Security Administration. This worker and his or her employer will each pay $2,783 this year. Approximately 6 percent of all workers will earn more than the $118,500 tax cap. Earnings above the cap now account for 17 percent of the aggregate pay of all workers who pay into Social Security.
An additional tax on workers' earnings pays for Medicare hospital insurance. This is a 1.45 percent levy, paid by workers and employers each on all wages, for a total tax of 2.9 percent. Self-employed persons pay 2.9 percent.
Workers and employers pay for Social Security. Workers pay 6.2 percent of their earnings up to a cap, which is $118,500 a year in 2015. (The cap on taxable earnings usually rises each year with average wages.) Employers pay a matching amount for a combined contribution of 12.4 percent of earnings. Self-employed persons pay both the employee and employer share for a total 12.4 percent. (Half of this contribution, the employer share, is a deductible business expense for income tax purposes.) Also, higher-income Social Security beneficiaries pay federal income taxes on their benefit income, and these taxes help pay for Social Security.
During 2011 and 2012, the premiums that workers pay for Social Security protection were temporarily reduced from 6.2 percent to 4.2 percent. The lost revenue from this “payroll tax holiday”—$103 billion in 2011 and $114 billion in 2012—was made up from the government's general fund.
In 2013 the average worker made $44,888 a year, according to the Social Security Administration. This worker and his or her employer will each pay $2,783 this year. Approximately 6 percent of all workers will earn more than the $118,500 tax cap. Earnings above the cap now account for 17 percent of the aggregate pay of all workers who pay into Social Security.
An additional tax on workers' earnings pays for Medicare hospital insurance. This is a 1.45 percent levy, paid by workers and employers each on all wages, for a total tax of 2.9 percent. Self-employed persons pay 2.9 percent.