Agenda > Taxes > Income Tax > FICA Tax

Social Security/Medicare

The Federal Insurance Contributions Act (FICA) provides for a federal system of old-age, survivors, disability, and hospital insurance. The old-age, survivors, and disability insurance part is financed by the Social Security tax. The hospital insurance part is financed by the Medicare tax. Each of these taxes is reported separately.
Generally, employers are required to withhold Social Security and Medicare taxes from employees’ wages and must also pay a matching amount of these taxes. Certain types of wages and compensation are not subject to Social Security taxes. Generally, employee wages are subject to Social Security and Medicare taxes regardless of the employee’s age or whether he or she is receiving Social Security benefits.