FICA (Federal Insurance Contributions Act)
TaxesPayroll taxes funding Social Security (6.2%) and Medicare (1.45%) — paid by both employee and employer.
Example
Example: On a $75,000 salary, understanding fica (federal insurance contributions act) could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how fica (federal insurance contributions act) works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.