Nashua, NH Residents Looks for Answers
Social Security taxes are taken out of an employee’s paycheck in the form of FICA (Federal Insurance Contributions Act). This tax covers both Social Security and Medicare. In general, everyone working and earning a paycheck will need to pay this tax. Very high earners will max out their Social Security contribution before the end of the year, only to have it resume after the new calendar year. The maximum taxable wage for 2022 is $147,000. Any income in excess of this will not have the FICA tax withheld.