Social Security Tax Services
Social security tax can be considered as a federal government benefit. In fact, it is a prominent part of the Federal Insurance Contribution Act tax. The social security tax is being assessed at a rate of 12.4%, which is usually split in between the employer and employee. People who earn an annual income up to $118,500 are eligible for it. It is important to keep in mind that salaries, wages, self-employment incomes and bonuses will be considered into the annual income.
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As mentioned earlier, 12.4% is assessed as the social security tax rate. Half of this will be played by the employer. If you are a person who earns a total annual compensation of $100,000 from your workplace, you will have to pay 6.2% of it as the social security tax. Your employer will pay the other 6.2%. In case if your annual income is more than $118,500, you will only have to pay the social security tax calculated for above mentioned value. The employer would contribute the same amount as well.
The social security tax can also be defined as a regressive tax. That’s because it creates a strong effect on the taxpayers with a lower income, when compared to others. If you pay close attention towards the above mentioned figures, the answer would be obvious. When determining the social security tax, no credits or deductions will be applied like in federal income tax. Even though people with a lower income do not pay any federal income tax, they would continue paying the social security tax in the long run.
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Sometimes, you will find it as a hard task to figure out the structure of social security tax. On the other hand, you will not have a clear understanding on how the social security taxes can benefit you. If you have any concerns related to the social security taxes, you can think of visiting Kerr Koncepts without any doubt on mind. They have maintained an excellent reputation throughout the past few years by helping people to clarify their issues related to all sorts of taxes. Kerr Koncepts can enhance your knowledge about social security taxes. It is always better to have a good understanding about these taxes, or else, you would wonder why you pay such a big amount every single year. Therefore, you can think of visiting Kerr Koncepts to get more information about our social security tax services with a doubt free mind.
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