What are FICA taxes?

Last modified 9/19/2024 8:23:01 AM EST

Federal Insurance Contribution Act (FICA) is one of the payroll tax that is deducted from the employee’s paychecks. It is the combination of Social Security and Medicare taxes. The Social Security tax range is 6.2%, and the Medicare tax range is 1.45%. Generally, employers of every business are required to withhold FICA taxes from their wages and pay them to the IRS. Both the employer and the employee must pay FICA tax.