Medicare and Social Security Taxes, What These Payroll Taxes Mean?

At the beginning of each year, if that is your case, you receive a W2 form as an employee from a company, do you know what information it contains and what is the use of this W2 form ?

This W2 form or annual earnings summary is used to declare taxes and that would be based on the information presented in that summary.

The W2 is basically a report that contains general information from the employee and from the employer, displays the annual wages paid to the employee, in addition to show the withholding that were taken away in the year to cover Federal Income Taxes, Medicare Taxes and Social Security Taxes for the year.

Medicare and Social Security are benefits that any employee is entitled to receive once employees reach the age of 65, if these employees pay their share of payroll taxes throughout the years and report their taxes year after year. People over 65 get health insurance for life through Medicare and will get an economic pension through Social Security.

Practically, a worker that get to the age of 65, have the right of retiring from a productive life and be able to receive both benefits, Medicare and Social Security, this as a right every employee has and that has accomplished through paying their corresponding payroll taxes for years.

When you check the form W2 out you will realize that it shows these 2 concepts on the up right corner

1 – Social Security Tax Withheld

2 – Medicare Tax Withheld

Each of these, contains an amount in the box, each amount represents the amount of money that was withheld from the employee wages for the year for each concept.

It is very important to say that, as soon as a person immigrates to the United States and start reporting taxes, would be able to establish an official record paying federal Medicare and Social Security payroll taxes, these records would allow the IRS to assign these tax amounts paid under these two concepts to every employee’s Social Security number.

It is for this reason that immigrants should take advantage of declaring their taxes otherwise they would not able to get any benefit from the money withdrawn annually from their paychecks for these 2 concepts, this money would be lost otherwise unless it is claimed through an annual tax preparation that is then sent to the IRS in due time.

Here at our office Advising & More can help you to get your tax reports; previous and current year up to date with the IRS. Do not hesitate on calling us at our office numbers 904-647-7622 & 7632 or say hello call or text at 904-437-1886. We can help you in Jacksonville with your previous tax years not yet reported or with your current tax report 2018.

We are interested on giving you a piece of advice for you to be well informed concerning your taxes and the benefit of maintain this obligations up to date, Advising & More LLC mission’s is to offer immigrants high quality service, Our office located in Jacksonville will be ready to help you with your taxes 2018, don’t miss the IRS deadline April 15, 2019.

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