What is the abbreviation for Social Security, and what are the associated percentages from employers and employees?

The abbreviation for Social Security is OASDI, which stands for Old-Age, Survivors, and Disability Insurance. The Social Security tax rate for both employers and employees is set at 6.2%. This means that for every paycheck, both the employer and employee contribute 6.2% of the employee's earnings to the Social Security program, up to a wage base limit. This contribution helps fund the Social Security system, providing benefits for retirees, disabled individuals, and survivors of deceased workers.

The importance of this rate lies in its role in funding a crucial safety net for millions of Americans. By understanding the correct percentage and abbreviation, individuals can better understand their own payroll deductions and the contributions made to government-run social welfare programs.