BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FICA (Federal Insurance Contribution Act)
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Federal Income Tax
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State Income Tax
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Detailed explanation-1: -FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self-employment. As you work and pay FICA taxes, you earn credits for Social Security benefits.
Detailed explanation-2: -Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance tax, also known as Medicare taxes.
Detailed explanation-3: -FICA helps fund both Social Security and Medicare programs, which provide benefits for retirees, the disabled, and children.
Detailed explanation-4: -An employer’s federal payroll tax responsibilities include withholding from an employee’s compensation and paying an employer’s contribution for Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA).