How everyone doing, in my paycheck of this week just appear a FICA deduction, anyone know what is this one?

Question

THANKS

This is not my first pay check, i been working for 6 months, so will they continue to take out money from my paycheck, I have 4 taxes and this FICA

Answer 1

Must be your first paycheck. FICA is the catch-all for Social Securty Tax (6.2%) and Medicare Tax (1.45%)

Answer 2

Yep. FICA is your Social Security tax and your Medicare Tax. (I just don't remember what the initials stand for... Federal Insurance Contribution.... something.)

Here's how it works. You work whatever hours for however much per hour. They multiply this out and get a number they call your gross income.

Then they start subtracting certain things from that. They usually take out Federal income tax withholding, which is based on information you provide on the W-4 when you start work... Single, Married, how many exemptions you're claiming, etc.

Then they subtract Social Security and Medicare contributions. Your part of the Social Security contribution is 6.2% of your gross wage. The employer matches that amount, and pays it to the Social Security Administration for you.

The Medicare contribution works the same way, except that percentage is 1.45% of the gross wages. The amount of your part of Soc. Sec. and the amount for your part of Medicare is added together for the FICA deduction on your pay stub.

Now, not all of everyone's yearly wages are subject to FICA, because the government has set yearly limits on the amount of income that is counted for this. I think it's $7000 for SS, but I don't remember right this minute.

If you make over the limit.. the W-2 will have more Federal wages listed than Social Security wages and Medicare wages. That's why they have those boxes on the W-2 form you get every year.

Hope this answers your questions.

Answer 3

It is a tax for social security and Medicare called the Federal Insurance Contributions Act or FICA.