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.
- Payroll TaxTaxes taken out of wages to fund programs like Social Security and Medicare, paid by both worker and employer.
- Medicare TaxA payroll tax on all wages that helps fund hospital and medical coverage for people on Medicare.
- Self-Employment TaxThe Social Security and Medicare tax that self-employed people pay to cover both the employee and employer shares.
- WithholdingMoney your employer takes out of each paycheck and sends to the government toward your expected tax bill.
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.