The OASDI (Old-Age, Survivors and Disability Insurance) tax is a U.S. tax that is levied on earned income to fund the Social Security program. It is a component of the Federal Insurance Contributions Act (FICA), along with the Medicare program, and is automatically deducted from paychecks. The OASDI tax rate for employees and employers is set at 6.2% . Employers are required to pay a matching 6.2%, and the accumulated funds are used to fund monthly benefits payments to Social Security program recipients. Self-employed workers pay the entire OASDI tax but can deduct half when they file taxes. The maximum amount on which OASDI tax gets applied changes from year to year, and for 2023, the maximum taxable earnings is $160,200.