If you're employed, you may notice a line on your pay stub for Social Security, FICA, or OASDI. These all relate to the same Social Security Tax you must pay and are separate from your federal income tax. The government collects this money to fund the benefits you will eventually receive...
The FICA tax, also commonly called payroll or withholding tax, is money collected from you and your employer to pay forservicessuch as old age, survivors, and disability insurance (OASDI). It also covers Medicare. Alternate name: Withholding or payroll tax ...
OASDI Tax: The Essential Guide to Social Security Contributions Learn all about OASDI tax, its rates, impact on retirement benefits, and guidelines for HR and payroll professionals. Read Now Article Read Time: 10 min The Power of Payroll Integration and APIs: Streamlining Modern Systems Drive ...
6.2% Social Security tax (sometimes called OASDI) 1.45% Medicare tax The Social Security tax only applies to the first $142,800 an employee earns (for 2021). After that, no more Social Security tax is incurred by either the employee or employer. On the flipside, employees earning more than...
Step 2: Register for your federal and state tax IDs To run payroll, you’ll need to have all the necessary federal, state, and local tax ID numbers. This is how the government identifies your business for tax purposes and verifies you’re paying all the required payroll and other taxes—...