Political Quotes

“For 7 out of 10 households, the FICA tax, also known as the payroll tax, is the greatest of all taxes that they pay. Yet half of the payroll tax is hidden from the employee's view. Current law requires employers to annually issue all of their employees a W-2 form, a written statement that shows their total wages and the amount withheld in taxes for the previous year. However, the information on American workers' W-2s does not tell the whole story. The 12.4 percent Social Security tax and the 2.9 percent Medicare tax are split equally between employers and employees. Current W-2s disclose only the employee's half of the cost of these programs. Many workers are probably unaware of this employer contribution to Social Security and Medicare, which also makes them unaware of how much their employment actually costs. Not only does this lack of information hide from employees the true cost of their employment but it also makes them uninformed about how much of their paycheck funds two government programs which are vital for their retirement security, Social Security and Medicare.”