Millions Face a Social Security Tax Hike of Up to $186 in 2018. Will You?
Most people complain that their taxes are too high, and that has prompted numerous calls to provide tax cuts for Americans. Yet despite the possibility that a tax reform package might bring some relief on the tax front, a substantial number of workers already face the prospect for a tax increase in 2018. For them, the boost will come from an increase in the amount of Social Security payroll tax that they have to pay. To help you figure out if you'll be one of the roughly 10 million Americans who'll have to pay as much as $186 more in taxes, here are some things you need to know about the Social Security payroll tax and what's happening to it in 2018.
The payroll tax that the government collects for Social Security applies to nearly every American worker. Only those who work for state and local governments with their own pension plans designed to take the place of Social Security are exempt from the payroll tax. Currently, this tax is 6.2% of your wages for employees, with employers kicking in an additional 6.2% on your behalf. Self-employed workers are responsible for the entire total of 12.4%.
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Source: Fool.com
