A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- FICAThe payroll tax that funds Social Security and Medicare, split between you and your employer on your wages.
- Social Security TaxA payroll tax on wages up to an annual limit that funds retirement, disability, and survivor benefits.
- Medicare TaxA payroll tax on all wages that helps fund hospital and medical coverage for people on Medicare.
- WithholdingMoney your employer takes out of each paycheck and sends to the government toward your expected tax bill.
- Self-Employment TaxThe Social Security and Medicare tax that self-employed people pay to cover both the employee and employer shares.
More in Taxes
1099Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Capital Gains TaxChild Tax CreditDependent
Plain-English education — not personalized legal, tax, or investment advice.