Okuzeka
Accounting & Tax vocabulary · Payroll & Employee Costs

Social security contributions

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, social security contributions means: Compulsory payments by employers and employees, calculated on wages, that fund pensions, health care and other social benefits.

In Turkish: SGK primleri, sosyal güvenlik primleri, sigorta primleri

How it is used

There is usually an employee share deducted from pay and an employer share paid on top. In the UK they are National Insurance contributions; in the US, Social Security and Medicare taxes (FICA).

Example sentences

  1. Employer social security contributions add a significant amount to our labour costs.

  2. In Turkey, the employee's social security contributions are deducted from gross pay before income tax is calculated.

Common collocations

  • employer contributions
  • employee contributions
  • pay social security contributions
  • National Insurance
  • payrollThe process of calculating and paying employees' wages, including tax and social security deductions, and also the total amount a company pays its staff.
  • gross payAn employee's total earnings for a period before income tax, social security and other deductions are taken off.
  • payslipA document given to an employee each pay period showing gross pay, each deduction such as tax and social security, and the final net pay.
  • withholding taxTax that the payer deducts from a payment, such as a salary, rent, dividend or freelance fee, and pays to the tax authority on behalf of the person being paid.

More terms: Payroll & Employee Costs

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This page explains English vocabulary for learners. It is not financial advice.