The supposed ACA replacement may have fallen through, but people relying on social security shouldn’t heave a sigh of relief just yet. A new tax reform is being worked on, and analysts are purporting that this might affect social security itself. The uncertainty has hospitals and healthcare facilities worried about the continued eligibility of many of the patients they serve.
The Status Quo
The payroll tax is similar to income tax, but the main difference between the two is that the former funds employee benefits, while income tax is what is owed to the government. In the current set up, the payroll tax funds Social Security and a portion of Medicare as well. This tax is generated by deducting a percentage of the worker’s wages, with the employer contributing an equal amount. Read more on this article: http://bit.ly/2pnZGPP