Federal Insurance Contributions Act - FICA
- Federal Insurance Contributions Act - FICA
- A U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments.
FICA stipulates that there is a maximum that can be allocated to Social Security, while there is no maximum on what can go toward Medicare. Once the maximum to Social Security is achieved, the contributor's FICA payment will not increase the Social Security portion but will continue to increase the contribution to Medicare. The amount of the FICA payment depends on the income of the contributor; the higher the income, the higher the FICA payment.
If FICA states, for example, that 12.4% of your salary goes toward Social Security and 2.9% goes toward Medicare, half of the payment is made by you and the other half by your employer. This means you pay 7.65% (6.2% and 1.45%) of your income, while your employer pays the other 7.65%. Self-employed people, on the other hand, must pay the full amount, but half - which would represent the employer's half - is a deductible business expense.
Investment dictionary.
Academic.
2012.
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Federal Insurance Contributions Act — (FICA) USA A federal law that imposes taxes on both employers and employees (26 U.S.C. §§ 3101 3128). Taxes paid under FICA include the Old age, Survivors and Disability Insurance (OASDI) tax, used to fund Social Security benefits, and the… … Law dictionary
Federal Insurance Contributions Act tax — The Federal Insurance Contributions Act (FICA) tax (pron en|ˈfаɪkə) is a United States payroll (or employment) tax [The FICA tax is imposed under the Federal Insurance Contributions Act, which is codified as usctc|26|21] imposed by the federal… … Wikipedia
(the) Federal Insurance Contributions Act — the Federal Insurance Contributions Act [the Federal Insurance Contributions Act] (abbr FICA) the US law by which money is automatically taken from an employee’s regular pay as a tax for ↑social security … Useful english dictionary
Federal Insurance Contributions Act — U.S. federal law requiring employers to withhold wages from employees for payments to the Social Security and Medicare programs, FICA … English contemporary dictionary
Federal Insurance Contributions Act — (abbr FICA) the US law by which money is automatically taken from an employee’s regular pay as a tax for social security. * * * … Universalium
FICA — / fī kə/ abbrFederal Insurance Contributions Act Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. FICA abbrv. Fe … Law dictionary
Self Employed Contributions Act Tax - SECA Tax — A form of taxes that self employed business owners must pay based on their net earnings from self employment. Self Employed Contributions Act Tax (SECA Tax) was first imposed by the SEC Act of 1954. Similar to the Federal Insurance Contributions… … Investment dictionary
FICA — noun a tax on employees and employers that is used to fund the Social Security system • Hypernyms: ↑income tax * * * /fuy keuh, fee / Federal Insurance Contributions Act: U.S. government legislation under which taxes are levied for the support of … Useful english dictionary
FICA — Federal Insurance Contributions Act (Business » Accounting) * First International Computer America, Inc. (Business » Firms) * Fellowship of Indonesian Christians in America (Community » Religion) * Federal Insurance Constrictions Authority… … Abbreviations dictionary
FICA tax — Short for Federal Insurance Contributions Act tax, it is a payroll tax that incorporates the Social Security tax and Medicare tax. The FICA tax is 15.3% of an individual s earned income up to a certain limit (called the Social Security Wage Base) … Law dictionary
