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Michael Marchand Kyle McMahon Social Security is funded with income from four sources. Social Security is primarily funded by payroll taxes assessed on wages in the Santa Smoking Merryjuana Christmas Funny Tee Xmas Gift T-Shirt. The employer pays 6.2% of income, and the employee chips in another 6.2%. The self-employed, being both employer and employee, pay 12.4% of income into the program.May 23, 2016..