FICA stands for the Federal Insurance Contributions Act—the payroll taxes that fund Social Security and Medicare. These taxes come out of your paycheck automatically, and your employer contributes a matching amount. Understanding how FICA works helps you see where your money goes and what these deductions mean for your retirement and healthcare coverage.
The articles here answer common questions about FICA: how the tax rates are calculated, what happens to the money you pay in, how FICA affects your Social Security benefits, and what changes occur at different income levels. You'll also learn how self-employed workers handle FICA differently and what records you need to track your contributions over time.