The Importance Of Social Security
Most Americans rely on social security to provide at least some of their income in retirement. It’s important to know how social security works. Hal Surratt CPA reveals some things your tax accountant wants you to know about social security.
You’ve been paying into the social security system all along. If you are employed, you pay into the social security system with every paycheck. 6.2% of your wages are withheld for the social security tax, also called the Old-Age, Survivors and Disability Insurance, or OASDI. Your employer also pays 6.2% of your wages into the system. If you are self-employed, you pay 12.4% of your wages, since you are both employer and employee. Social security tax is due on the first $118,500 of wages as of 2016.
Your
You’ve been paying into the social security system all along. If you are employed, you pay into the social security system with every paycheck. 6.2% of your wages are withheld for the social security tax, also called the Old-Age, Survivors and Disability Insurance, or OASDI. Your employer also pays 6.2% of your wages into the system. If you are self-employed, you pay 12.4% of your wages, since you are both employer and employee. Social security tax is due on the first $118,500 of wages as of 2016.
Your