Federal Insurance Corporation of America (FICA)

The Federal Insurance Corporation of America (FICA) is not an organization but often refers to the FICA taxes, which are Social Security and Medicare taxes paid by employees and employers. These taxes fund social insurance programs providing retirement, disability, and healthcare benefits. Typically, about 7.65% of your earnings (split between employee and employer) goes toward FICA taxes. Self-employed individuals pay both portions through self-employment taxes. FICA ensures workers and their families have financial support during retirement or if they become disabled or need healthcare coverage through Medicare.