Payroll taxes include the Social Security tax and the Medicare tax. Social Security taxes provide benefits for retired workers, the disabled, and the dependents of both. The Medicare tax is used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of both are eligible to receive Medicare benefits upon reaching age 65. Federal income taxes are used to provide for national programs such as national defense; veterans and foreign affairs; social programs; physical, human, and community development; law enforcement; and interest on the national debt. Use these resources to learn more about withholding.

Additional Tags

payroll taxes, social security tax benefits, federal income tax withholding, irs: payroll taxes and federal income tax withholding, medicare tax

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Classroom Considerations

• Knovation Readability Score: 3 (1 low difficulty, 5 high difficulty)