How Social Security Taxes Work
Taxes are taken out of every paycheck in order to fund both Social Security and Medicare. These deductions are labeled FICA and are a shared tax between employees and employers. When paying these taxes you earn credits towards Social Security, one credit for every $1,260 up to a total of four credits each year. Most people need 40 credits to be eligible for retirement benefits, or 10 total years of work. These credits also factor in to eligibility for Survivors Benefits and Disability Benefits with varying degrees of requirements depending on age and circumstance. There is a lot more that goes in to these taxes, for more information visit this article by J. Jioni Palmer with Social Security Matters.
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