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Social Security and Medicare Taxes 1 Answer Key Form

Social Security and Medicare Taxes 1 Answer Key Form

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hi class so today we're going to talk about social security and medicare taxes the federal insurance contribution act fica requires employers to deduct a percent of your income tax income as taxes for social security to pay for retirement and disability benefits and medicare which provides medical insurance the social security tax rate is 6.2 percent so that's something that's really important that you need to know and is paid on the first 97 500 income so that number is an old number i'm just going to do a little highlighting so again the 6.2 percent is correct cross out 97.5 and currently for 2020 the current rate is 137 700. okay so you pay 6.2 percent into social security which again pays for retirement and disability benefits uh up to 137 700 of your gross income okay the medicare tax rate is 1.45 percent and there's no limit on your earnings so whether you make forty thousand hundred and forty thousand or two million dollars you will always

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