FICA Tax: What is FICA Tax, Rates, Exemptions and Calculations

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A guide to understanding the FICA tax, also called payroll tax - the mandatory deduction from your employee’s payroll. Know your FICA tax rates, exemptions, & tips
Understanding the FICA Tax Short for the Federal Insurance Contributions Act, FICA refers to the American law that requires both employees and employers to contribute to the cost of the Social Security and Medicare programs in the US. Therefore, the FICA tax refers to the taxes paid in accordance with this law. Let’s dive deeper with this essential guide to the FICA tax. What is the FICA Tax? The FICA tax is a mandatory deduction from an employee’s payroll. American employers must withhold a
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