Home > Answers > WhatsFICAmean twa1365591597

What's FICA mean?

Answers (1)

siddiqshadab

FICA Stand For (Federal Insurance Contributions Act) is a United States federal payroll (or employment) tax. imposed on both employees and employers to fund Social Security and Medicare. federal programs that provide benefits for retirees, the disabled, and children of deceased workers. The tax also provides funds to the health care system for institutions that provide healthcare for workers that do not have health insurance and can not afford healthcare treatment. Social Security benefits include old-age, survivors, and disability insurance (OASDI); Medicare provides hospital insurance benefits for the elderly. The amount that one pays in payroll taxes throughout one's working career is associated indirectly with the social security benefits annuity that one receives as a retiree. This has caused some to claim that the payroll tax is not a tax because its collection is tied to a benefit. The United States Supreme Court decided in Flemming v. Nestor (1960) that no one has an accrued property right to benefits from Social Security. The Federal Insurance Contributions Act is currently codified at Title 26, Subtitle C, Chapter 21 of the United States Code.

03:00, 12 July 2014

You have to log in to post to discussions.

Creator

Featured blossaries

Exercise that will transform your body

Category: Health   4 4 Terms

Famous Novels

Category: Literature   6 20 Terms

2014 World Cup Winners

Category: Sports   1 5 Terms

The 10 Richest Retired Sportsmen

Category: Sports   1 10 Terms

"Belupo" pharmaceutical company

Category: Health   1 23 Terms

The Top 25 Must-See Movies Of 2014

Category: Entertainment   1 25 Terms