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Social Security Tax Information: This is a retirement fund tax that was
originally set up by the federal government in 1935 in response to The Great
Depression. The Social Security tax is levied on employed persons and employers
will contribute as well. Payments are withheld from the employee paychecks
according to a set percentage of annual income. So long as sufficient money is
paid over time for the individual, there will be some form of retirement benefit
available to him or her in the future. Self-Employed persons must pay into the
system as well, through what is called the
self-employment tax.
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