MANAGEMENT

Detailed explanation-1: -Federal Insurance Contributions Act (FICA) is a payroll tax that’s paid by both the employer and employee and is used to fund Social Security and Medicare. The Social Security tax rate is 6.2% while Medicare is 1.45%, so the FICA rate is 7.65% for employees and 7.65% for employers.

Detailed explanation-2: -An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income.

Detailed explanation-3: -Payroll tax can be defined as the tax that is withheld, charged, or levied on the payroll of the employer. This will comprise of wages, gross salaries, perks and any form of remuneration that is paid to the employees. Payroll Tax is the tax withheld, charged or levied on the payroll of an employer.

Detailed explanation-4: -money collected from employers and employees by the government to pay people when they retire or because they are ill, unemployed, etc.: The current rate of social security tax is 12.4%. Currently the government receives enough in social security taxes on workers and companies to pay its pension bill.