Introduction
If you've ever glanced at your paycheck stub and wondered, “What does OASDI mean?” — you're not alone. OASDI stands for “Old-Age, Survivors, and Disability Insurance,” a crucial deduction that funds the U.S. Social Security system. Whether you're planning your retirement or just curious where your money goes, understanding OASDI helps make sense of your deductions and supports smarter financial planning.
1. What OASDI Represents
OASDI is the official name for the Social Security tax requirement deducted from your paycheck. Put simply, it’s one half of the payroll tax that supports:
- Retirement benefits
- Survivor benefits for family members
- Disability insurance for qualifying workers
2. How the OASDI Tax Works
Here’s how it’s calculated:
- The OASDI tax rate is 6.2% of your earnings.
- Your employer matches this with another 6.2%, making the total 12.4%.
- If you’re self-employed, you’re responsible for the full 12.4%, though half is deductible at tax time.
3. Income Limits and Caps
OASDI taxes apply only up to a certain income level each year — known as the Social Security wage base. Once your earnings exceed that limit, OASDI is no longer deducted. Keeping track of this helps prevent overpayment and supports better tax planning.
4. Why It Matters for You
The OASDI tax isn’t just a deduction—it’s an investment:
- Your contributions count toward future retirement eligibility.
- It helps provide financial support to your dependents in case of disability or death.
- Knowing your OASDI withholding ensures you're on track for Social Security benefits later on.
5. Understanding the Label on Your Stub
On most pay stubs, OASDI might be listed as “OASDI,” “Social Security,” or “FICA – SS.” Check your stub’s deduction section and look for any of these labels to see your tax contribution accurately.
Need a Stub Example for Comparison?
Want to compare or double-check whether your stub labels and calculations make sense? You can generate a sample with accurate fields and formatting:
Generate a compliant pay stub example or review a template in our Regular Pay Stub guide.
Conclusion
Seeing OASDI on your paycheck stub is more than just a deduction—it’s your share of the Social Security tax, funding your future financial protection. At 6.2% of your income, matched by your employer, this contribution supports retirements, disability benefits, and survivor support. Knowing what it is and how it works gives you a clearer picture of your long-term financial foundation.
