Sorry, this might be a basic question, but I'm having trouble understanding this, so would like to ask here.
I've recently started a full-time position, and I notice that two things are being deducted from my salary in addition to income taxes:
- Social Security
I had adjusted my income / expenses and factored in taxes, but these two have thrown my calculations off.
I know that these two are mandatory, but what is their function? When do I get to "collect" on Social Security and Medicare?
I'm very clear about 401K now, but I've deferred putting money into my 401K till I get a hang of the other deductions on my salary.