It's really sad that Americans don't even understand our tax sys

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Other - It's really sad that Americans don't even understand our tax system. As a prior payroll clerk, SS, Medicaid and Medicare are deductions from your gross pay. It is not a tax. No tax on OT or tips will not affect these deductions, nor SS. SS is a mandatory deduction taken out on every $100 you gross. It's not a federal or state tax. You make $700 plus 200 OT, you will pay SS and that on $900, but only federal tax on $700. Tips will be claimed, but only SS will come out. No federal tax. More money in your pocket but same into the SS fund.

Print Publication Date: 
4/02/2025
Topic: