One's take home pay makes it to your back pocket only after federal and state taxes including those for Social Security and Medicare are deducted from your earnings. As wage earners and taxpayers, you need to know where your hard-earned money is going.
Employers match their employees share.
That makes for a total of 15.3 percent of a worker's earnings that is divided between the Social Security and Medicare programs. The self-employed, including small business owners and farmers, are responsible for the full 15.3 percent. Even so, the current system faces severe shortfalls shortly after the turn of the century when 77 million baby boomers retire and the workforce shrinks. President Clinton stepped forward in January to launch a national dialogue on reforming Social Security for the 21st century. Each of us has a responsibility to get involved in this discussion.