Social Security Act

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Dictionary Says

Definition of 'Social Security Act'

A law enacted by President Franklin D. Roosevelt in 1935 to create a system of transfer payments in which younger, working people support older, retired people. Under the act, the government began collecting the Social Security tax from workers in 1937 and began making payments in 1940.
Investopedia Says

Investopedia explains 'Social Security Act'

The Social Security tax combines with the Medicare tax to form what is known as FICA, or the payroll tax. As of 2010, the Social Security tax rate was 6.2% and the Medicare tax rate was 1.45%. The total payroll tax of 7.65% is deducted from the employee’s paycheck; the employer must make a matching contribution of an additional 7.65%. The employee effectively pays the entire tax, as the employer’s matching requirement reduces what he is able to pay his employees. Thus, Social Security represents a tax of 12.4% on the employee in addition to Medicare taxes, federal income taxes, state and local income taxes, sales taxes and numerous other less-noticed taxes.
Search results for

'Social Security Act'

  • How To Make Social Security Work - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/How-To-Make-Social-Security-Work.aspx
    ... known investment manager Ron Muhlenkamp detailed that the average life expectancy
    for Americans was 63 years of age back when the Social Security Act was passed ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-insurance-contributions-act.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Introduction To Social Security

    http://www.investopedia.com/articles/retirement/06/socialsecurity.asp
    ... TUTORIAL: Qualified Plans The Social Security system is funded through payroll taxes.
    The Federal Insurance Contributions Act (FICA) mandates a 10.4% levy on ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-tax-rate.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/breakeven-age-calculation.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/lose-early-benefits-work.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/payments-deduction-trust-fund.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/inflation-cola-cpi.aspx
    ... portion could increase to 100%, and if the Economic Growth and Tax Relief
    Reconciliation Act (EGTRRA) is ... Read Avoid The Social Security Tax Trap for more. ...

  • Will Social Security Live To See 80? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Will-Social-Security-Live-To-See-80.aspx
    ... an item called "FICA deductions," which refers to the Federal Insurance Contributions
    Act. You pay 6.2% of your salary in Social Security taxes, another 1.45 ...

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