It requires that employers, employees and self-employed people pay Social Security tax. The money is used to pay benefits to eligible disabled individuals, retirees, survivors of the deceased, and dependents of beneficiaries.
Regularly employed people [edit]. For 2014, the employee's share of the Social Security portion of the FICA 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). The FICA tax is considered a regressive tax on income with no standard deduction or personal exemption deduction. It is imposed on only the first $113,700 of gross wages in 2013 and $117,000 in 2014. The tax is not imposed on investment income such as interest and dividends. Financial Intelligence Centre Act (FICA). The purpose of FICA is to combat money laundering activities by, among other things, establishing a Financial Intelligence Centre and imposing certain duties on institutions and other persons that might be used for money laundering purposes.  Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States federal payroll (or employment) 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. The FICA tax is considered a regressive tax on income with no standard deduction or personal exemption deduction. It is imposed on only the first $113,700 of gross wages in 2013 and $117,000 in 2014. The tax is not imposed on investment income such as interest and dividends. For 2014, the employee's share of the Social Security portion of the FICA 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) FICA is the result of the Social Security Act passed by President Franklin D. Roosevelt in 1935. Congress passed the Federal Insurance Contributions Act in 1935, mandating employers to withhold a set portion of employees' salary in each pay period. People can collect reduced Social Security benefits starting at age 62. The U.S. Department of the Treasury is responsible for managing funds collected by FICA. Making the world better, one answer at a time. FICA stands for Federal Insurance Contributions Act! It's a tax that employers take out of employees' pay check for social security benefits for the elderly, disabled, the retirees, and kids that parent or parents work are dead. Still 6.2% for both employer & employee. Actually, that 6.2% is just for the social security tax portion of FICA. FICA consists of social security and medicare. The total FIC … A tax is 7.65%, which includes the 1.45% medicare tax. In the United States, Social Security is primarily the Old-Age, Survivors, and Disability Insurance (OASDI) federal program. The original Social Security Act (1935) and the current version of the Act, as amended, encompass several social welfare and social insurance programs. Social Security is funded through payroll taxes called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA).  Purpose of FICA. The Social Security Act was established on Aug. 14, 1935 by President Franklin D. Roosevelt. It requires that employers, employees and self-employed people pay Social Security tax. The money is used to pay benefits to eligible disabled individuals, retirees, survivors of the deceased, and dependents of beneficiaries. DEFINITION of 'Federal Insurance Contributions Act-FICA'. A U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments. If FICA states, for example, that 12.4% of your salary goes toward Social Security and 2.9% goes toward Medicare, half of the payment is made by you and the other half by your employer. FICA, the Financial Intelligence Centre Act, No. 38 of 2001, established a regulatory anti-money laundering system for South Africa. FICA has had major implications for the accountable institutions and is not to be taken lightly. There can be few who have not heard of FICA, the Financial Intelligence Centre Act, No. 38 of 2001. The Act established a regulatory anti-money laundering system for South Africa.
https://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax https://www.momentum.co.za/for/partners/client-protection/fica https://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax http://www.wisegeek.org/what-is-fica.htm http://www.answers.com/Q/What_is_the_purpose_if_a_FICA_tax https://en.wikipedia.org/wiki/Social_Security_(United_States) http://www.ehow.com/facts_5683212_fica-paystub_.html http://www.investopedia.com/terms/f/fica.asp http://www.eduflex.com/virtualbook/publications/fica.htm
what is the purpose of fica and why was it established