FICA Tax
- Federal Insurance Contributions Act Tax: a payroll tax that includes Social Security and Medicare taxes, set at 15.3% on income up to a yearly changing limit, and 2.9% beyond this limit
- A significant part of the income deduction on my paycheck went towards the FICA Tax.
- As her income is pretty high, she realized she was paying the 15.3% FICA Tax up to the limit, and then 2.9% without any cap.
- The FICA Tax takes into account both Social Security and Medicare contributions.
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