Asked by Karina Rocha on Jul 20, 2024

verifed

Verified

Social Security tax is paid on all your income,whereas Medicare tax is paid up to the maximum taxable income amount.

Social Security Tax

A tax that finances the Social Security program, providing benefits for retirees, the disabled, and survivors of deceased workers.

Medicare Tax

Medicare Tax is a federal tax that funds the Medicare program, typically deducted from an employee's paycheck to provide healthcare benefits to individuals aged 65 and older.

  • Comprehend the process for determining Social Security and Medicare taxes based on yearly earnings.
verifed

Verified Answer

SA
Shanieka AbneyJul 21, 2024
Final Answer :
False
Explanation :
Social Security tax is paid up to a maximum taxable income amount, whereas Medicare tax is paid on all your income without a cap.