CM: 2.4 Social Security and Medicare Taxes

Front

What is Social Security Tax?

Back

A tax levied on earnings to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.

Front

What is the standard rate for Social Security Tax?

Back

6.2% of gross income.

Front

How is Medicare Tax calculated?

Back

Medicare Tax is calculated as 1.45% of gross income.

Front

If gross income is $24,388, what is the Social Security Tax due?

Back

$1,512

Front

If gross income is $500, how much Social Security tax is withheld?

Back

$31

Front

What percent of your earnings goes to Medicare?

Back

1.45% of gross income.

Front

If gross income is $87,425, what is the Medicare Tax due?

Back

$1,268

Front

If gross income is $24,388, what is the Medicare Tax due?

Back

$354

Front

What is the purpose of Social Security?

Back

To provide financial support to individuals during retirement, disability, or after the death of a family wage earner.

Front

What is the difference between Social Security Tax and Medicare Tax?

Back

Social Security Tax funds retirement and disability benefits, while Medicare Tax funds health insurance for individuals aged 65 and older.