FICA Tax

FICA tax is a U.S. payroll tax that funds Social Security and Medicare programs, which provide financial support for retirees, disabled individuals, and healthcare for seniors. Employees and employers each pay a percentage of wages—currently 6.2% for Social Security and 1.45% for Medicare—totaling 15.3% when combined. Self-employed individuals pay the full amount themselves. This tax ensures ongoing funding for vital social safety nets, helping eligible Americans maintain financial stability during retirement or disability.