Paying Social Security & Medicare Taxes |  |  |
From 1957 on, people in the military have paid Social Security taxes, just like civilians. Those taxes are deducted from their military pay, and as their employer, the Federal Government pays an equal amount.
The contributions that military personnel make go toward Social Security and Medicare benefits—just as they do for civilians.
In 2005, the combined Social Security and Medicare tax rate that employees pay is 7.65 percent up to a maximum income of $90,000. If someone's income exceeds the maximum, they continue to pay just the Medicare portion of the tax (1.45 percent) on the additional earnings.
|
Click the Next arrow to continue. | | |
| 
