what is the FICA?

Question

how is it deducted, when is it deducted, what is it used for, what is the average percent deducted, definition.

Answer 1

FICA stands for Federal Insurance Contributions Act. It is the combination of Social Security and Medicare taxes that are assessed on all earned income. It's actually 2 taxes. It used to be listed as one deduction for FICA but is now stated as the separate taxes for Social Security and Medicare. Some employers may still show the combined FICA withholding on pay stubs but your Form W-2 will show the separate tax amounts.

Social Security tax is assessed at a rate of 6.2% on the first $97,400 of earned income per year. The employer and employee are each assessed 6.2% of wages paid for a combined rate of 12.4%.

Medicare tax is assessed at 1.45% on all earned income, again with the employer and employee paying equal amounts for a combined rate of 2.9%

Self-employed people must pay both portions of the tax so they pay 15.3% on the first $97,400 of all earned income and 2.9% on all earned income above $97,400 per year.

Answer 2

FICA is Social Security tax. It's deducted from each paycheck. I don't know what the current percentage is -- arouind 7.75 or so percent. You pay that amount, and your employer pays the same amount from its own money. It's used for the supposed Social Security benefits you'll supposedly be receiving when you're 62 or 67 or 70 or whatever age they raise it to by the time you're old. They keep raising the age because the system is corrupt, going bankrupt, and giving money to illegal immigrants who never paid a penny of any kind of tax to the government but who are reaping more benefits than most of us U.S. citizens will see in a lifetime. There's no average percentage -- it's the same across the board, I believe (although once your income reaches something liek $94,000, you don't have FICA deducted on any income over that $94,000).

Answer 3

FICA (Federal Insurance Contributions Act) is the payroll tax that pays for Social Security and Medicare.

The Social Security portion is 6.2% of gross compensation up to $97,500. The Medicare portion is 1.45% with no limit.

Answer 4

FICA is the amount of social security/medicare that is taken from your gross pay each time you are paid. The rate is .0765 times your gross wages. This amount is matched by your employer & goes into your social security account that you draw from when you retire.

Answer 5

the word spelled fica

Answer 6

http://www.ssa.gov/mystatement/fica.htm

Go to this link for a definition