Social Security Taxes

Social Security Taxes are part of payroll taxes and are typically split between employer and employee. In the US, each contributes a fixed percentage of wages up to a certain income limit. Self-employed individuals pay the full amount themselves. These taxes fund benefits for retirees, disabled individuals, and survivors. For startups, understanding payroll tax obligations is essential to ensure compliance and accurate employee compensation. These taxes are automatically withheld and reported through payroll systems.