Question: how social security and medicare are funded?
Answer: Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $137,700 (in 2020), while the self-employed pay 12.4 percent. ... The payroll tax rates are set by law, and for OASI and DI, apply to earnings up to a certain amount.