Social Security and Medicare Tax

For Social Security Medicare Taxes in F1, J1 Visas Visit www.VisaTaxes.com

Some very good answers.  It's a very confusion subject for many....

http://www.britisch-invest.de

Medicare is partially financed by payroll taxes imposed by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act of 1954. In the case of employees, the tax is equal to 2.9% (1.45% withheld from the worker and a matching 1.45% paid by the employer) of the wages, salaries and other compensation in connection with employment. Until December 31, 1993, the law provided a maximum amount of wages, etc., on which the Medicare tax could be imposed each year. Beginning January 1, 1994, the compensation limit was removed. In the case of self-employed individuals, the tax is 2.9% of net earnings from self-employment, and the entire amount is paid by the self-employed individual. This is applied to the cost of Medical Medicare costs for you when you become elgible for Medicare.

It's related to medical insurance, but not yours. It's your contribution, a contribution that your employer is needed to match to the Medicare system, which provides health care benefits to Social Security recipients.