All citizens of the United States who are gainfully employed pay certain taxes on their wages in order to support the various programs that Social Security offers. The Social Security tax rate is discussed in several sections of the Internal Revenue Code, namely sections 1401, 3101 and 3111. The discussion centers on how the tax rates are set by law for Social Security programs such as Disability Insurance, Old Age and Survivors Insurance. The Federal Insurance Contributions Act or FICA states that employers have to pay the equivalent amount of Social Security tax that their employees pay in every paycheck they receive. The United States Congress has authorized certain requirements for Social Security tax, and any business that does not follow these requirements is subject to massive penalties.