Lesson 2.4 - Social Security and Medicare Taxes

Front

What percent of your earnings goes to Medicare?

Back

1.45%

Front

What percent of your earnings goes to Social Security?

Back

6.2%

Front

What are the current rates for Social Security and Medicare?

Back

Social Security: 6.2%, Medicare: 1.45%

Front

If your gross pay is $500, how much Social Security tax is withheld at a rate of 6.2%?

Back

$31

Front

If gross income is $24,388, Social Security is 6.2%, and Medicare is 1.45%, what is the Medicare Tax due?

Back

$354

Front

Define Social Security Tax.

Back

A federal tax that funds the Social Security program, providing benefits for retirees, disabled individuals, and survivors.

Front

Define Medicare Tax.

Back

A federal tax that funds the Medicare program, providing health insurance for individuals aged 65 and older and certain younger people with disabilities.

Front

What is the formula to calculate Social Security tax?

Back

Social Security Tax = Gross Income x Social Security Rate (6.2%)

Front

What is the formula to calculate Medicare tax?

Back

Medicare Tax = Gross Income x Medicare Rate (1.45%)

Front

What is the maximum taxable income for Social Security in 2023?

Back

$160,200.