What is FICA?

--------------------



CNNMoney

·

 

* International
· U.S.

 
 
Log In
Log Out
 
CNN
 

Set Edition

· Home
· Video
· Markets
· Term Sheet
· Economy
· Tech
· Leadership
·
·

    SUBSCRIBE TO MONEY  

** What is FICA? **

*If you're a wage or salaried employee, your employer picks up half of this
tax burden.*




In Lesson 18
glossary
Glossary take the test
Take
the test

· Top things to know

· Tax basics

· So what's your tax bracket?

· What's FICA again?

· Who needs to pay estimated taxes

· 1040 mysteries revealed

· The ABCs of the AMT

· The dreaded audit

· The best time for tax planning

· Tax law changes


Money 101 Lessons
Setting priorities

Making a budget

Basics of banking and saving

Basics of investing

Investing in stocks

Investing in mutual funds

Investing in bonds

Buying a home

Controlling debt

Employee stock options

Saving for college

Kids and money

Planning for retirement

Asset allocation

Hiring financial help

Health insurance

Buying a car

Taxes

Home insurance

Life insurance

Estate planning

Auto insurance

401(k)s


Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income
up to an annual limit must be paid into Social Security, and an additional
2.9% must be paid into Medicare.

That limit is $113,700 for 2013.

There are no earned income limits on Medicare taxes -- so even if your
salary is well above the cap for Social Security tax, you will still owe
Medicare tax on your total earned income.

If you're a wage or salaried employee, you pay only half the FICA bill (In
2013, 6.2% for Social Security plus 1.45% for Medicare), and the tax is
automatically withheld.

Your employer contributes the rest


Source: money.cnn.com/magazines/moneymag/money101/lesson18/index4.htm


what is fica


Federal Insurance Contributions Act tax - Wikipedia, the free encyclopedia

--------------------

** Federal Insurance Contributions Act tax **

From Wikipedia, the free encyclopedia
Jump to: navigation, search
"FICA" redirects here. For other uses, see FICA (disambiguation).

Taxation in the United States
Great Seal of the United States (obverse).svg
Federal taxation

· Alternative Minimum Tax
· Capital gains tax
· Corporate tax
· Estate tax
· Excise tax
· *Payroll tax*
· Revenue
· Gift tax
· Income tax
· Internal Revenue Service
· IRS Code
· IRS Forms
· History
· Constitutional Authority
· Taxpayer standing
· Court
· Evasion

State and local taxation

· Land value tax
· Property tax
· Sales tax
· State income tax
· State tax levels
· Use tax

Federal tax reform

· Automated payment transaction tax
· 9–9–9
· Competitive Tax Plan
· Efficient Taxation of Income
· FairTax
· Flat tax
· Hall–Rabushka flat tax
· Kemp Commission
· Taxpayer Choice Act
· USA Tax
· Value Added Tax

Tax protesting

· History
· /America: Freedom to Fascism/
· /The Law that Never Was/
· /Cheek v. United States/
· Tax protester arguments
· Constitutional
· 16th Amendment
· Statutory
· Conspiracy

· v
· t
· e

*Federal Insurance Contributions Act (FICA) tax* /ˈfaɪkə/ is a
United States Federal payroll (or employment) tax^[1] imposed on both
employees and employers to fund Social Security and Medicare^[2]
—federal programs that provide benefits for retirees, the disabled,
and children of deceased workers. Social Security benefits include old-age,
survivors, and disability insurance (OASDI); Medicare provides hospital
insurance benefits for the elderly. The amount that one pays in payroll
taxes throughout one's working career is associated indirectly with the
social security benefits annuity that one receives as a retiree.^[/citation
needed/] This has caused some


Source: en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax

© 2005-2018 HaveYourSay.org