[Answer] FICA

Answer: a tax on employees and employers that is used to fund the Social Security
system
FICA
What is FICA ? FICA is a U.S. federal payroll tax. It stands for the . Federal Insurance Contributions Act . and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self-employment. As you work and pay FICA taxes you earn credits for Social Security benefits. How much is coming out …
The Federal Insurance Contributions Act ( FICA ) is a federal law that requires employers to withhold three different types of employment taxes from their employees’ paychecks. These taxes include 12.4 percent of compensation in Social Security taxes 2.9 percent of salary in Medicare taxes totaling 15.3 percent of each paycheck.
The Federal Insurance Contributions Act ( FICA ) is a U.S. law that mandates a payroll tax on the paychecks of employees as well as contributions from employers to fund the Social Security and …
The first part of FICA is the Social Security Tax. As an employer you are required to withhold 6.2% of each employee’s taxable gross wages to cover this tax up to a maximum wage base limit. For the 2021 tax year the wage base limit is $142 800. Once an employee’s salary reaches that limit they are no longer required to pay this tax.
FICA Tax Exemptions. Just about everyone pays FICA taxes including resident aliens and m…

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