Social Security and Medicare
Social Security and Medicare are programs established by the federal government. Social Security provides income during your retirement years and provides income protection should you become disabled. Medicare provides medical insurance during retirement or if you are disabled.
You are required by law to contribute a portion of your paycheck to fund Social Security and Medicare. The amount of contribution required to fund these programs is significant; fortunately, Boone Health funds half of the contribution for you.
| Here's an example of an employee earning $50,000 per year: | |
|---|---|
| Boone Health Social Security contribution | $3,100 (6.2% of $50,000) |
| Your Social Security contribution | $3,100 (6.2% of $50,000) |
| Boone Health Medicare contribution | $725 (1.45% of $50,000) |
| Your Medicare contribution | $725 (1.45% of $50,000) |
| Total contribution | $7,650 (15.30% of earnings) |
Social Security contributions stop when your earnings exceed the Social Security Wage Base ($137,700). The Medicare tax rate is 1.45% and is applicable to all wages paid during the year. An additional 0.9% in Medicare taxes applies to individuals with annual earned income of more than $200,000, and $250,000 for married couples filing jointly.
Learn more at the Social Security website or the Medicare website.