what is FICA TAX AND WHY DO SOME PEOPLE HAVE IT WITHHELD AND SOME DONT?

Answer 1

It is the social security tax and medicare tax. FICA stands for Federal Insurance Contributions Act. Some people indeed are exempt from the tax. Mainly foreign nationals. But there are also others, such as members of religous orders. (dont ask me why), students working on campus during the school year, many government employees, railroad workers who are covered by rail retirement.

Answer 2

Federal Insurance Contributions Act (FICA) tax, a kind of payroll tax, is a United States employment tax imposed in an equal amount on employees and employers to fund federal programs for retirees, the disabled, and children of deceased workers. The FICA taxes support Social Security and Medicare. The Federal Insurance Contributions Act is codified as Chapter 21 of Subtitle C of the Internal Revenue Code (26 U.S.C. § 3101 through 26 U.S.C. § 3128).
http://en.wikipedia.org/wiki/FICA_tax

Answer 3

It stands for Federal Insurance Contributions Act. It relates to social security. I have listed a link below with a helpful article on FICA. Hope it helps.

Answer 4

Some government employees and railroad workers are covered by, and pay into, a different retirement plan that replaces social security, so they don't pay FICA.

An individual who is considered an independent contractor doesn't have these taxes withheld, but pays both the employer and employee halves when he or she files their tax return.