10 Social Security Terms You Need to Understand
Social Security serves as a key source of income for countless retirees and disabled individuals. It's also an extremely complex program loaded with rules and terminology. If you're attempting to learn about Social Security (which is something you should do, regardless of how old you happen to be), here are a few key terms you'll need to understand.
OASDI stands for old age, survivors, and disability insurance, and in the context of your paycheck, it's the tax used to fund the Social Security program. The current OASDI tax rate is 12.4%. If you work for an outside company, you'll lose half that amount of your earnings up to a certain income limit, while your employer will pay the remaining 6.2%. If you're self-employed, however, you'll pay the full 12.4% up front.
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Source: Fool.com
