Question

Olivia’s employer deducts an amount from her paycheck for the Medicare program. What type of withholding is being deducted from Olivia’s paycheck?

Answer 1

Social Security withholding

Step-by-step explanation:

Social security refers to any program of the government put in place to render financial help to low or no income earners. In the US, it is referred to as a social safety net or welfare.

Medicare program in the US falls in the category of social security because it assist elderly people in the US with the age of 65 and above to receive health insurance.

Therefore, the deduction from Olivia’s paycheck for Medicare program is social security withholding.

Answer 2

Medicare is a federal health insurance program for US citizens who are about 65 of the age and older. Certain younger people with physical disabilities are eligible for Medicare as well. Keep in mind the program doesn’t cover the entire cost of medical treatment.