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Social Security and Medicare Taxes
1Your wages are subject to FICA taxes (FICA stands for Federal Insurance Contributions Act). 2Your employer takes out FICA taxes from your wages each paycheck. 3These taxes pay for the Social Security system and Medicare. 4The Social Security system uses the funds to make payments to you upon your retirement. 5These payments are subject to age and other requirements. 6The Social Security taxes are equal to 6.20 percent of your salary up to a limit. 7The limit was $84,900 in the year 2002, but it changes over time. 8No Social Security tax is paid on income beyond this maximum level. 9Medicare is a government health insurance program that covers people over age 65. 10Medicare covers some of the costs for health care in the case of illness. 11The Medicare taxes are 1.45 percent of your salary. 12All salaries are taxed at this rate.
1-5. Complete the outline by supplying the missing major and minor details from the paragraph.
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