Social Security payroll tax

Social Security payroll tax definition - finance
A tax paid in equal amounts by companies and employees, whose contributions are deducted from their paychecks. Self-employed workers can deduct one-half of their Social Security payment from their taxes. In 2002, the Social Security tax was 12.4 percent of a workerÂ’s wages, up to $84,900. The Social Security payroll tax started in 1937 at a rate of 2 percent.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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