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Payroll Tax Decrease reduces Social Security Funds
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Government & Elections
Payroll Tax Decrease reduces Social Security Funds
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Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in t
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Cat:d51398b3-89f9-463d-bf1b-4b885f02c9eeForum:af978875-5bc6-4b07-a6fb-b18062132f95Discussion:14ace3ac-508d-40e8-a3d6-4315d3df6802
Forums » Politics & Society » Government & Elections » Payroll Tax Decrease reduces Social Security Funds
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Payroll Tax Decrease reduces Social Security Funds
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 15, 2012 10:41 PM EST
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Posts: 22
First: October 5, 2011 Last: January 15, 2012 |
In Response to Re: Payroll Tax Decrease reduces Social Security Funds: Hey, pattyasm - Although you are right in how the payroll tax is figured and how it is assigned between the employer and the employee - You are WRONG about how your social security benefit is actually figured - it is not figured on the amount of payroll tax that has been submitted under your account - Your social security benefit is figured by your average earnings from year ot year after you have become vested. Posted by GailL1 Yes I know that, you are correct. It is an average of yearly salaries from the first year you start working. |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 16, 2012 9:15 AM EST
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Re: Payroll Tax Decrease reduces Social Security Funds: In Response to Payroll Tax Decrease reduces Social Security Funds : The payroll tax decrease was done in a previous administration. It used to be 7.5%-and your employer matched those FICA taxes, or payroll taxes. The amount of your gross pay depends upon how much FICA tax was withheld. We all know, as told by Joe Scorborough from the Morning Joe show how 11 trillion dollars was taken, stolen from the Social Security fund. The Social Security fund is solvent through 2037 or something like that. The small increase of payroll taxes that you think would help fund Social Security is not even making common sense. It is such a small amount, and they were just trying to raise it back up to what it was before a previous admiistration decreased it. So for my brother, who is going to retire next year, the payroll taxes have been reduced for quite a few years now and will reduce the amount of Social Security he will get, which he is hopping mad about that it was not raised back up to what it used to be. So he gets less money now. So how can that be a good thing?? Posted by pattyasm The rates are 1.45% Medicare for employees and 6.2% for Social Security. That totals 7.65% for the EMPLOYEE portion. Both are matched by the employer. The Medicare portion has no limit in salary - 1.45% of everything they make in salary. The 2012 salary limit for Social Security contributions is $ 110,100. The CURRENT Administration's payroll tax reduction (in place since tax year 2010) is ONLY on the employee's Social Security portion, reducing it from 6.2% to 4.2%. The EMPLOYER still pays in the same 6.2% up to the maximum contribution based on the salary figure. Here is the Social Security Tax rates through the years as shown on the Social Security Administration website. Social Security Administration: Social Security Tax Rate History Your brother's SS benefit will be based on his salary earning through the years that were reported to the SSA each year on his W-2 or SE report if he was self employed. |
Forums » Politics & Society » Government & Elections » Payroll Tax Decrease reduces Social Security Funds
