Social Security Tax

What is Social Security Tax?

Social Security Tax is a general term describing taxes paid for a variety of old age and retirement benefits. There are two types of social security taxes: OASDI (Old Age, Survivor, & Disability Insurance) and Medicare (HI - hospitalization insurance). In 1991 the IRS required employers to report the two taxes separately. The 1994 percentage for FICA is 6.2% and for MCARE it is 1.45%. The total deduction for the two taxes is 7.65%. Employers must usually match this deduction.