Definition of
Federal Insurance Contributions Act
in US money deducted for Social Security and Medicare in the United States, a federal law that requires employers to deduct a percentage of their employees' income for payment into the trust fund that provides Social Security and Medicare benefits. Employers and employees are each responsible for half the payment, while self-employed individuals are responsible for the entire payment but are allowed a tax deduction for half.
Related definitions of "Federal Insurance Contributions Act"
- Abbr FICA
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