Social Security Tax Law

Social Security tax is a payroll tax collected from employees and employers to fund the Social Security program, which provides financial support to retirees, disabled individuals, and survivors. Employees contribute a percentage of their earnings, while employers match this amount. This tax is part of the Federal Insurance Contributions Act (FICA) and is deducted directly from paychecks. The funds collected help ensure beneficiaries receive monthly payments based on their work history, fostering economic security in retirement or during disability. Understanding this tax helps individuals recognize the system supporting their future financial well-being.