What Is the FICA Tax?

FICA Tax is a combination of Social Security and Medicare taxes that fund retirement benefits, insurance programs, and healthcare services.

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[{"selector":"#anim-83980a9e-492b-48a4-8bb8-4acf61e4234f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] FICA taxes are calculated based on a percentage of your income, with specific rates for Social Security and Medicare. FICA taxes are calculated based on a percentage of your income, with specific rates for Social Security and Medicare. CREDIT GETIMAGE

[{"selector":"#anim-f867c842-4bf0-444d-aa70-2277e1338f88","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] Paying FICA taxes earns you Social Security credits, which determine your eligibility for retirement benefits and other Social Security programs. Paying FICA taxes earns you Social Security credits, which determine your eligibility for retirement benefits and other Social Security programs. CREDIT GETIMAGE

[{"selector":"#anim-8bf3e4de-33b9-4242-aacd-5c6abc53cdd0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] FICA taxes also qualify you for disability and life insurance benefits, providing financial protection in case of unexpected events. FICA taxes also qualify you for disability and life insurance benefits, providing financial protection in case of unexpected events. CREDIT GETIMAGE

[{"selector":"#anim-9647e9dc-0029-4b56-ac49-1c5da01d6a62 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The FICA tax rates vary for employees and employers, with specific percentages allocated to Social Security and Medicare. The FICA tax rates vary for employees and employers, with specific percentages allocated to Social Security and Medicare. CREDIT GETIMAGE

[{"selector":"#anim-ee210a58-3e8e-4772-8dc4-6fa025670079 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] There are limits to FICA taxes, including a wage base and earning thresholds, beyond which additional taxes may not apply. There are limits to FICA taxes, including a wage base and earning thresholds, beyond which additional taxes may not apply. CREDIT GETIMAGE

[{"selector":"#anim-cd43f093-6447-492b-8cca-d129afade9a2","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] Certain payments and employment situations may be exempt from FICA taxes, depending on specific exceptions and regulations. Certain payments and employment situations may be exempt from FICA taxes, depending on specific exceptions and regulations. CREDIT GETIMAGE

[{"selector":"#anim-474cd093-f7e5-4ed9-9086-4592be1f94ad [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] State and local government employees, as well as pension holders, are subject to FICA taxes like other working individuals. State and local government employees, as well as pension holders, are subject to FICA taxes like other working individuals. CREDIT GETIMAGE

[{"selector":"#anim-7ca39814-6bbb-4ff3-bca2-ef3c957ab69c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Calculating your FICA tax involves considering your salary and specific circumstances, following a step-by-step guide. Calculating your FICA tax involves considering your salary and specific circumstances, following a step-by-step guide. CREDIT GETIMAGE

[{"selector":"#anim-ff26a47b-92c3-4aa8-8a8e-ef8596eddadd [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Self-employed individuals starting their own businesses have important considerations and obligations regarding FICA taxes that they need to be aware of. Self-employed individuals starting their own businesses have important considerations and obligations regarding FICA taxes that they need to be aware of. CREDIT GETIMAGE

What Is the FICA Tax?

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What Is the FICA Tax?

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FICA Tax is a combination of Social Security and Medicare taxes that fund retirement benefits, insurance programs, and healthcare services.

FICA Tax is a combination of Social Security and Medicare taxes that fund retirement benefits, insurance programs, and healthcare services.

What Is the FICA Tax?

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