healthmyths
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- Sep 19, 2011
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Social Security is financed through a dedicated payroll tax.small correction. medicare and SS are not payroll taxes, they are payments into a fund that we can pull from later. At least that's what they were before the dems destroyed them under LBJ.
Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $160,200 (in 2023), while the self-employed pay 12.4 percent.
The payroll tax rates are set by law, and for OASI and DI, apply to earnings up to a certain amount.