Federal Insurance Contributions Act tax

FICASocial Security and Medicare taxespayroll taxFederal Insurance Contributions ActFederal Insurance Contributions Act (FICA) taxFICA payroll taxFICA taxFICA taxespayroll taxesSocial Security payroll tax
The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.wikipedia
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Social Security (United States)

Social SecuritySocial Security ActSocial Security Administration
The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Social Security is funded primarily through payroll taxes called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA).

Income tax in the United States

federal income taxincome taxIndividual income tax
If a worker has overpaid toward Social Security by having more than one job or by having switched jobs during the year, that worker can file a request to have that overpayment counted as a credit for tax paid when he or she files a federal income tax return.
In the United States, the term "payroll tax" usually refers to 'FICA taxes' that are paid to fund Social Security and Medicare, while "income tax" refers to taxes that are paid into state and federal general funds.

Social Security Wage Base

a fixed amount
This limit, known as the Social Security Wage Base, goes up each year based on average national wages and, in general, at a faster rate than the Consumer Price Index (CPI-U).
The Social Security tax is one component of the Federal Insurance Contributions Act tax (FICA) and Self-employment tax, the other component being the Medicare tax.

Medicare (United States)

MedicareMedicare (US)Medicare Part B
The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Most Medicare enrollees do not pay a monthly Part A premium, because they (or a spouse) have had 40 or more 3-month quarters in which they paid Federal Insurance Contributions Act taxes.

Payroll tax

payroll taxespayrollCanada
The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
The Federal Insurance Contributions Act tax is a federal payroll tax imposed on both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

Self-employment

self-employedSelf–employedself-employment tax
A tax similar to the FICA tax is imposed on the earnings of self-employed individuals, such as independent contractors and members of a partnership.
The self-employment tax in the United States is typically set at 15.30%, which is roughly the equivalent of the combined contributions of the employee and employer under the FICA tax.

Totalization agreements

totalization agreement
In order to relieve a person of double-taxation, the certain countries and the United States have entered into tax treaties, known as totalization agreements.
Totalization agreements are international tax treaties that seek to eliminate dual taxation with regards to Social Security and Medicare taxes in the United States.

J-1 visa

J-1JDS-2019
Nonresident aliens who are students, scholars, professors, teachers, trainees, researchers, physicians, au pairs, or summer camp workers and are temporarily in the United States in F-1, J-1, M-1, Q-1, or Q-2 nonimmigrant status are exempt from FICA on wages paid to them for services that are allowed by their visa status and are performed to carry out the purposes the visa status.
J-1 visa holders are exempt from paying Federal Insurance Contributions Act (FICA) taxes (for Social Security and Medicare) when they are nonresident aliens for tax purposes, which is usually the first five calendar years if they are categorized as students, or the first two calendar years if they are categorized as teachers or trainees.

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

2010 Tax Relief Act111-3122010 tax deal
In December 2010, as part of the legislation that extended the Bush tax cuts (called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010), the government negotiated a temporary, one-year reduction in the FICA payroll tax.
The act also includes several other tax- and economy-related measures intended to have a new stimulatory effect, mostly notably an extension of unemployment benefits and a one-year reduction in the FICA payroll tax, as part of a compromise agreement between Obama and Congressional Republicans.

Flat tax

flat income taxflatflat rate
The Social Security component is a flat tax for wage levels under the Social Security Wage Base (see "Regular" employees above).
For example, in 2014, the United States Federal Insurance Contributions Act tax is 6.2% of gross compensation up to a limit of $117,000 of gross compensation (resulting in a maximum Social Security tax of $7,254).

Form W-2

W-2W-2 formsForm W-2 series
Form W-2
The form is also used to report FICA taxes to the Social Security Administration.

Social Security Administration

Social SecuritySocial Security BoardU.S. Social Security Administration
Annual maximum taxable earnings and contribution rates, 1937-2006, from the Social Security Administration
To qualify for most of these benefits, most workers pay Social Security taxes on their earnings; the claimant's benefits are based on the wage earner's contributions.

Cafeteria plan

cafeteriapre-tax money
Cafeteria plan
Therefore, those contributions are not generally considered wages for federal income tax purposes, nor are they usually subject to Federal Insurance Contributions Act tax (FICA) and Federal Unemployment Tax Act (FUTA).

United States

American🇺🇸U.S.
The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Disability insurance

disabilitydisability income insurancedisability income
Social security benefits include old-age, survivors, and disability insurance (OASDI); Medicare provides hospital insurance benefits for the elderly.

Kevin Hassett

Kevin A. Hassett
Consequently, Kevin Hassett wrote that FICA is not a tax because its collection is directly tied to benefits that one is entitled to collect later in life.

Health insurance

medical insurancehealthhealth benefits
FICA provides funds to the health care system for institutions that provide healthcare for workers that do not have health insurance and cannot afford healthcare treatment.

Supreme Court of the United States

Supreme CourtUnited States Supreme CourtU.S. Supreme Court
The United States Supreme Court decided in Flemming v. Nestor (1960) that no one has an accrued property right to benefits from social security.

Flemming v. Nestor

The United States Supreme Court decided in Flemming v. Nestor (1960) that no one has an accrued property right to benefits from social security.

Codification (law)

codifiedcodificationcodify
The Federal Insurance Contributions Act is currently codified at Title 26, Subtitle C, Chapter 21 of the United States Code.

Internal Revenue Code

U.S. tax codetax codeIRC
The Federal Insurance Contributions Act is currently codified at Title 26, Subtitle C, Chapter 21 of the United States Code.

United States Code

U.S.C.U.S. Codefederal statute
The Federal Insurance Contributions Act is currently codified at Title 26, Subtitle C, Chapter 21 of the United States Code.

Center on Budget and Policy Priorities

CBPP
In 2004, the Center on Budget and Policy Priorities stated that three-quarters of taxpayers pay more in payroll taxes than they do in income taxes.

Regressive tax

regressiveregressive taxationburdening the poor
The FICA tax is considered a regressive tax on income with no standard deduction or personal exemption deduction.