Social Security and Medicare are programs established by the federal government that you are required by law to contribute a portion of your paycheck to fund. While the amount you pay toward these programs is significant, GRH funds half of the contributions for you. In the example below, you can see how these contributions are made for a employee earning $55,000 per year:

It is important to note that Social Security contributions stop when your earnings exceed the Social Security Wage Base (for 2023 that amount is $160,200). Medicare contributions will apply to all of your earnings without a cap and if your annual earnings exceed $200,000 in a year, the contribution percentage increases from 1.45% to 2.35% on pay over that amount.

Social Security is the term used for the Old-Age, Survivors, and Disability Insurance (OASDI) program in the United States, run by the Social Security Administration (SSA). While best known for retirement benefits, it also provides disability income and survivor benefits: Click Here to Learn More about Social Security

Medicare is the federal health insurance program created to provide health coverage for Americans aged 65 and older. The Medicare program is comprised of four main parts and is administered by the Centers for Medicare and Medicaid Services (CMS).

• Medicare Part A – often referred to as “hospital insurance” – is devoted to inpatient care, covering the costs of inpatient hospital stays (of at least one night), skilled nursing facility stays (if they meet specific criteria), home health care and hospice care.
• Medicare Part B – often called “medical insurance” – covers outpatient expenses, including physician and nursing fees, as well as a range of services (such as x-rays, diagnostic tests, and renal dialysis) and some equipment.
• Medicare Advantage (Part C) – allows Medicare beneficiaries to receive Medicare-covered benefits through private health plans which may also include extra benefits such as prescription drug coverage. In exchange for the benefits, coverage may be limited to network of providers.
• Medicare Part D – prescription drug coverage – provides substantial price breaks on prescription drugs for those who enroll in Part D plans designed and administered by private health insurance companies.
• Medicare supplement (Medigap) – is supplemental coverage purchased by Medicare beneficiaries to fill the holes in Original Medicare: Click Here to Learn More About Medicare