See: Withholding. That's the amount that your mama corporation is taking out of your paycheck each month in prep for your tax payments...so you don't have to.
Your mama loves you. Sometimes, she withholds too much, and you get a rebate at year end. Other times she doesn't withhold enough, i.e., underwithholds. So, at the end of the year, you then owe a bigger check to the government.
We have student loans to forgive though, so...you know...they need the dough.
Related or Semi-related Video
Finance: What is FICA?38 Views
Finance allah shmoop What is fight guy Well there's death
and there are taxes we all pay taxes and if
you don't well then you might be flirting with the
death thing But yeah pretty much everyone pays taxes and
if you accept a paycheck in america someone pays fight
got How does the government know it's going to take
your fi ca well your employer has to withhold it
from your pay He check Pika stands for federal insurance
contributions act and it represents your contribution to medicare and
social security Will fight attacks runs about fifteen point three
percent You pay half and your employer pays half Will
you actually receive the benefit from your contribution Like you
really gonna bet that social security you'll still be around
when you need it Yeah well that's another bala wax 00:00:51.339 --> [endTime] Good luck
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