1 Comment
  1. Prashant Thakur says

    FICA or Federal Insurance Contribution Act taxes also called payroll taxes are aid by individuals and an equal contribution from employers. The primary aim of the FICA tax is  to create Social Security and Medicare expense arrangement for an individual .

    The total tax under FICA comes to  15.3% ( 7.5% of gross pay of the employee plus equal contribution from employer). If you want to know exact  breakdown of FICA taxes, then here it is :

    • the OASDI (Old Age, Survivors, and Disability program, AKA, Social Security) portion is 6.2%, up to the annual maximum wages subject to Social Security.This amount is capped every year.
    • The Medicare portion is 1.45% for each employee. No cap on medicare

     

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