I. Domestic Administration of Social Security Taxation and the Scope of International Coordination – continued
a. The First Aspect: Contributions
Social security contributions are imposed as a tax via the Internal Revenue Code (Code) and collected by the Department of Treasury through the Service. Two statutes apply. With respect to employers and their employees, the Federal Insurance Contributions Act (FICA) applies. With respect to self-employed persons, the Self Employment Contributions Act (SECA) applies. Under FICA, employers and employees contribute to social security based on wages paid. Under SECA, contributions are based on self-employment income received. Read More
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