What percentage of wages do employees and employers each contribute specifically to Social Security?

How social security works

Chapter 1

The birth of a safety net

Chapter 2

How the money flows

Chapter 3

Calculating your slice of the pie

Chapter 4

Global cousins and future paths

YOUR GOAL

Master of How social security works

Ch 2 · How the money flows
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Demographics and the funding challenge
BETA

hank Balance workers and retirees to discover how aging populations impact Social Security funding.

Jul 14

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hank Social Security Funding

Payroll taxes, yeah! For your future, for our care!

Jul 14

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hank Understanding the wage base cap

Jul 14

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Understanding the wage base cap

hank There is a maximum amount of annual earnings subject to the Social Security payroll tax.

Jul 14

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The magic of FICA taxes

hank Workers and employers jointly fund the system through Federal Insurance Contributions Act taxes deducted from paychecks.

Jul 14

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Fun Fact

Trust fund storage: The physical paper bonds representing the Social Security Trust Fund are kept in a filing cabinet in Parkersburg, West Virginia.

Jul 14

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Gossip

Should high earners pay more?

Jul 14

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Quiz

What type of financial asset does the Social Security Trust Fund hold?

Jul 14

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hank The pay as you go illusion

Jul 14

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Quiz

What is the 'wage base cap' in the US Social Security tax system?

Jul 14

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hank The magic of FICA taxes

Jul 14

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Quiz

What is the name of the federal payroll tax deducted from US paychecks to fund Social Security and Medicare?

Jul 14

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hank The role of the trust funds

Jul 14

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Quiz

In 1950, there were 16.5 workers paying into Social Security for every retiree. Approximately what is that ratio today?

Jul 14

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Quiz

What percentage of wages do employees and employers each contribute specifically to Social Security?

Jul 14

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Quiz

What does 'pay-as-you-go' mean for the US Social Security system?

Jul 14

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Quiz

If you are self-employed, what percentage of your earnings must you pay for the Social Security portion of taxes?

Jul 14

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Quiz

Where is the surplus money kept when Social Security collects more tax than it pays out in benefits?

Jul 14