Social security gets cost-of-living increase.The ceiling for computing computing - computer the Social SeCurity tax will go up to $62,700 in 1996 from $61,200 in 1995. The Social Security Administration announced that then $1,500 increase is due to an increase in the Cost of living. There is no change in the Federal Insurance Contributions Act tax For other uses, see FICA (disambiguation). How the tax is calculated Overview The Center on Budget and Policy Priorities states that three-fourths of taxpayers pay more in payroll taxes than they do in income taxes. rates from 1995 to 1996: Each employer and employee is taxed at 7.65%--6.2% for Social Security and 1.45% for Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. insurance, For self-employed self-em·ployed adj. Earning one's livelihood directly from one's own trade or business rather than as an employee of another. self workers the rate is 15.3%--12.4% for Social Security and 2.9% for Medicare. |
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