Paying Taxes Can Tax The Best Of Us: Difference between revisions
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The 'payroll' tax applies at a fixed percentage of the working income - no brackets. Being an employee, you pay 6.2% of one's working income for Social Security (only up to $106,800 income) and sole.45% of it for Medicare (no limit). Together they take one 7.65% of one's income. There's no tax threshold (or tax free) involving income in this system.
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