ENTREPRENEURSHIP

Detailed explanation-1: -Example of Social Security Taxes Izzy earns $85, 000 for the tax year 2022 and has a 6.2% Social Security tax withheld from his pay. The federal government, in effect, collects 6.2% x $85, 000 = $5, 270 from Izzy to help pay for retirement and disability benefits.

Detailed explanation-2: -They include: unemployment insurance benefits and supplements, accident, injury and sickness benefits, old-age, disability and survivors’ pensions, family allowances, reimbursements for medical and hospital expenses or provision of hospital or medical services.

Detailed explanation-3: -Under this statutory act, an employee contributes 12% of his or her monthly salary and his or her employer contributes a matching amount, while the government contributes 1% of the employees’ salary, with a total contribution of 25% of the employee’s gross salary.

Detailed explanation-4: -Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner.