You have no savings-bank-like account where your Social Security tax payments have been kept.
The dividends would not be subject to Social Security tax, since they are not wages.
Americans have no savings-bank-like account where their Social Security tax payments have been kept.
It could replace the income tax and the 6.2% employee portion of the Social Security tax.
Right now you only pay a Social Security tax up to a certain point of your income.
The working poor continue to pay far more than their fair share of the Social Security tax.
Her Social Security tax has just risen by two percentage points, from 10.4% to 12.4%.
Economists say the Social Security tax increase may slow consumer spending and economic growth in the April-June quarter.
Thus the Social Security tax is believed to increase both inflation and unemployment.
Back in 2010 Congress passed a law that cut the Social Security tax from 6.2% of income to 4.2%.
And, they quickly agreed to the Social Security tax cut as part of the two-year extension of the Bush tax cuts.
FORBES: Addressing The Fallacious Views Of Contemptuous Keynesians
The deal allowed a temporary cut in the Social Security tax to expire, so withholding will rise to 6.2% from 4.2%.
According to senior White House aides, Bush will say Social Security tax revenues are safe and that Medicare benefits will be paid.
Anything above that cap is not subject to the Social Security tax.
By needing to cover, say, only 20 percent of the population with a safety net, the Social Security tax could be dramatically lowered.
FORBES: Fixing The Nagging Problem Of Social Security -- Part 2
Accordingly, for Republicans to support cutting the Social Security tax rather than, say, the corporate income tax, suggests a continuing belief in Keynesianism.
FORBES: Addressing The Fallacious Views Of Contemptuous Keynesians
Generally, older folks fare better due to the tax increases over the years (the Social Security tax was just 1% when the program started).
FORBES: What Could a Paul Presidency Mean for Your Finances?
For example, I think many investors may be underestimating the negative impact that the expired social security tax holiday could have on consumer spending.
Instead, many employers will be using the 2012 tables come January but will omit the two-percentage-point Social Security tax cut in effect this year.
Everything you make over that number is still reduced for federal and state income taxes as well as Medicare, but the 4.2% Social Security tax is avoided.
Lift the current income cap for people paying the Social Security tax and tax all the income above the current cap at 7.5% (half the regular rate).
Anyway, any extension of the Social Security tax to a higher income level is likely to be accompanied by an attempt to squelch the S corp strategy.
The Fed's statement signaled its concern about a Social Security tax increase, which took effect Jan. 1, and deep government spending cuts, which began taking effect March 1.
Interestingly enough, opinion polls taken at the time showed that the Social Security tax cut was the only part of the package that the public did not support.
FORBES: Don't Extend The Ill-Conceived, Evil Payroll Tax Cut
The most meaningful provision in the 2010 Tax Relief Act was the 2% cut in the Social Security tax rate, from 6.2% to 4.2% (Medicare remains uncapped at 1.45%).
FORBES: Year-End Tax Planning Tips For Stock Options And Restricted Stock
The recent tax compromise between the President and Congress merely extended existing tax rates for another two years and provided a transitory 2% reduction in social security tax withholding.
The sneaky play here is to minimize the salary paid to owner-operators, who thereby avoid a social security tax (FICA on W-2 forms), and simply flow the income through as a distribution.
The Bush Administration will probably propose, as it has in the past, allowing workers to allocate a small portion of their Social Security tax to their own personal savings accounts.
Overall, food is down -3.5%, which may explain why restaurants have done fairly well this year even though the employee social security tax went back up from 4.2% to 6.2%.
应用推荐