[tx_eggman]

Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare.

If you’re a wage or salaried employee, you pay only half the FICA bill (In 2012, 4.2% for Social Security plus 1.45% for Medicare), and the tax is automatically withheld.

Your employer contributes the rest.

If you’re self-employed, however, you’re expected to cough up both the employee and the employer share of FICA. You are, however, permitted to deduct half of this self-employment tax as a business expense.

Given that the post refeerenced Social Security, not Medicare, is there a problem with the numbers I quoted?

[Ratman83]

FICA is Social Security.

[Ratman83]

No, nothing wrong with your numbers only some more data, for general info.

Also it use to be 6.2 from employer and employee, but since SS is doing so well (/s) the government decided to reduce the payment by the employee by 2%. These guys in government a such a waste.

[freeandfreezing]

Given that the post refeerenced Social Security, not Medicare, is there a problem with the numbers I quoted?

You understated the amount people actually pay to the government today. Its even worse than what you describe. The notion that the employee isn't really paying the "employer" portion of the tax is a concoction of liberal politicians. Just ask anyone who is self employed.

[gatechie]

From my pay stub . . . .
EFFECTIVE 1-1-2012 RATES ARE:
FICA-4.2% OF $110,100/YEAR;
MEDICARE-1.45% OF ALL EARNINGS;

Which is why every "millionaire" making over 110K per year pays a lower percent of their income in taxes than those making less than 110K per year, because the payment out of and (so far) the contribution into FICA is capped.