what is oasdi on my paycheck

OASDI stands for Old-Age, Survivors, and Disability Insurance, which is a tax that funds the Social Security program of the federal government. It is one of the required federal taxes that is taken out of an employees paycheck. The OASDI tax rate is 12.4% of wages up to a certain income limit, which is $160,200 for 2023. If you are an employee, the OASDI tax is split evenly between you and your employer, meaning that 6.2% is automatically deducted from your paycheck, and your employer pays the other 6.2% . If you are self-employed, you will pay the entire 12.4% OASDI tax yourself. The OASDI tax is considered an additional expense for your employer and won’t be further deducted from your pay. The money collected from the OASDI tax goes to the federal government to help fund Social Security, which provides financial support to those who have lost income due to retirement, disability, or death.