Federal Insurance Contributions Act (FICA) tax
- A tax that funds benefits for retirees, their dependents, and workers who are disabled along with their dependents, commonly known as the Social Security tax
- The increased FICA tax deductions in John's paycheck reflected the new tax laws.
- Businesses are required to match the FICA tax withheld from their employees' wages.
- A portion of each paycheck is automatically withheld for the Federal Insurance Contributions Act (FICA) tax.