The Social Security benefits program is funded by a payroll tax. Specifically, the government collects a 12.4% tax on wages to pay for retirement benefits. The government also collects a 2.9% tax to fund Medicare. Self-employed individuals pay these entire amounts themselves, while those who have traditional jobs pay half of that amount, and their employer covers the other half. In total, between employer and employee contributions, these taxes add up to 15.3% of your pay going toward funding Social Security and Medicare coverage.

Collectively, these taxes are called FICA taxes because they were authorized by the Federal Insurance Contributions Act (FICA). Most people pay FICA taxes all year long on every dollar they make. However, most is not all. Some Americans are done paying their Social Security taxes for the year, even though others pay until their very last paycheck.

Here's why some Americans are finished, but others have a long way to go in fulfilling their obligation.

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Source Fool.com