Social Security tax is a tax applied to income generated from labor. The tax is also known as the Old-Age, Survivors and Disability Insurance, or OASDI. More » Business & Finance Taxes

The purpose of the Social Security tax is to fund the current Social Security program, explains Investopedia. The money collected from the tax pays for current retiree’s Social Security benefits, which include a monthly ... More » Business & Finance Taxes

The federal Social Security tax is paid by employees and employers at 6.2 percent of an employee's wages, according to the Social Security Administration. Wages up to $118,500 are taxed at this rate, as of 2015. Self-emp... More » Business & Finance Taxes Income Tax

Social Security income may be taxable if a recipient's income reaches certain thresholds. If his total income is between $25,000 and $34,000 per year, a recipient may be taxed on 50 percent of his Social Security income,... More » Business & Finance Taxes

Social Security tax is withheld automatically from wages paid to employees, and it is calculated based on responses to Form W-4 questions. Self-employed individuals must calculate and pay this tax separately on Form 1040... More » Business & Finance Taxes

Social Security does not decrease benefit payments for individuals earning additional taxable income if they are at full retirement age, notes the Social Security Administration. People not yet at full retirement age hav... More » Business & Finance Taxes

The main benefit of the tax on Social Security benefits, which is only levied on those who have substantial incomes other than Social Security, is that it reinforces the Social Security system. The tax amount collected o... More » Business & Finance Taxes