Axes that fund social security and medicare are referred to as

TAX

Medicare is funded in part by payroll taxes established by the Federal Insurance Contributions Act and the Self Employed Employment Tax Act of 1954. In the case of employees, the tax is equal to 2.9% (1, 45% applied to the worker and the other 1.45% paid by the employer) of wages, salaries and other compensations. Until December 31, 1993, the law provided for a maximum amount of wages, in which Medicare tax could be imposed each year. As of January 1, 1994, the indemnity limit was removed. An independent worker must pay the full tax of 2.9% on net profits, but can deduct half of the income tax in the calculation of income tax.

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