Payroll tax is a term not everyone is familiar with. 'Payroll' refers to the payment of an organization's employees. Payroll is typically the largest expense of an organization if we look at a list of monthly expenses. It's a lot more than the cost of electricity. Payroll tax is the amount of taxes an organization pays to the government. I don't know exactly what it is with a great degree of confidence, but from what I understand Payroll tax matches the amount of Social Security tax and Medicare tax withheld from each employee's paycheck. The image here is talking about one aspect of Social Security withholding. The amount of Social Security taxed from each paycheck is 6.2%. What Is the Social Security Tax Limit? (usnews.com) What Happens When Your Earnings Exceed the Taxable Maximum? After your earnings exceed the taxable maximum for that year at a given job, Social Security taxes will stop being withheld and you will notice a bump in your paychecks. "Once you bump up against the limit, then the net amount of your paycheck just increases," Clark says. "There's no more Social Security tax that is deducted." Since we continually discover that we won't be able to continue to fund Social Security after 2037. Solvency of the program is dependent on increasing the amount of tax collected, and thus a Payroll Tax formula that increases the limitation collecting beyond a certain point, currently the $160,000 that we see from the pictures, will help bolster the capabilities of Social Security. Social Security is a little socialist; or at least it can be. When the government is involved in funding the income of retired, there is taxation involved. Similarly, MediCare is a 'social program' that is funded by government. To make adjustments to these programs is proactive in my opinion, but others feel it's a 'welfare state' or lazy and that saving and earning are the fabric of society, and a handout is a departure from our original morals.
It’s a real travesty the way our society has handled Social Security. I remember the 50s when social Security was very low and my grandparents lived in poverty. So gradually the payments increased but politicians raided the fund to pay for wars etc without raising taxes. And now the boomers are retired and costs are very high…now what. This is no surprise since we have known since 1946 this was coming. Of course the payroll taxes should be made progressive…duh. But conservatives have tried since FDR to kill social Security. And the preposterous idea those with the bulk of the wealth should pay their share of social costs…slanderous. And the blame also rests with the low and moderate income people who support Rs and conservatives and T. Have you been asleep?? It’s hard to think of a more gross example of ignorance.
