Plain-English definitions for the terms you'll encounter on your financial journey.
A United States federal payroll tax that is used to fund Social Security and Medicare programs.
A payroll tax that funds the Medicare program, providing health insurance for people aged 65 and older or those with disabilities.
The administrative task of calculating and distributing wages to employees, including tax withholdings and benefits.
Taxes paid by employers and employees based on wages and salaries, primarily used to fund social insurance programs.
Monthly payments provided to retired workers, their spouses, and survivors who have paid into the system through payroll taxes.
An independent contractor who is treated as an employee for payroll tax purposes because of the nature of their work.