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Video instructions and help with filling out and completing Social security tax withholding calculator

And we've already begun to see the squeeze that the long-living baby-boomers will place on Social Security Social Security taxes already have increased and benefits already have been cut Social Security taxes known as payroll or FICA taxes increased from less than 6% in nineteen seventy six to seven point six five percent in 1990 this rate is levied on both employees and employers so the total FICA tax is now over fifteen percent of your salary also the taxable wage base grew dramatically over this time in 1976 you paid FICA taxes on only the first $17,000 in wages now you pay taxes on your first sixty two thousand dollars in wages by the way ficus stands for Federal Insurance Contributions Act but make no mistake these are taxes not contributions if you decide not to contribute this year you'll be getting a telephone call the IRS almost ruthlessly pursues those who don't pay their payroll taxes FICA taxes are also hard to avoid there are no exemption levels as there are with income taxes you pay FICA taxes on your first dollar of wages although you can defer income taxes via retirement accounts you can't avoid FICA taxes so FICA taxes hit low-income people especially hard.