Finance Terms: Federal Insurance Contributions Act (FICA)
The Federal Insurance Contributions Act (FICA) is a significant social welfare program that contributes to the financial security of millions of Americans. Understanding the history and purpose of FICA, along with its components, is essential for anyone who wants to make informed decisions about their finances. In this article, we’re going to take a deep dive into FICA and explore its critical elements, including the social security and Medicare tax, how it affects our paychecks, and more. Read on to learn everything you need to know about FICA.What is FICA and Why is it Important?FICA is a payroll tax that…