What Does FICA Stand For?

FICA stands for Federal Insurance Contributions Act

FICA, or Federal Insurance Contributions Act, is a United States federal law that mandates contributions from both employees and employers to fund Social Security and Medicare programs. It outlines the payroll tax responsibilities essential for providing retirement, disability, and healthcare benefits to eligible individuals. FICA taxes are withheld from employees' wages and matched by employers, playing a crucial role in maintaining the financial stability of these social insurance programs.