Who is FICA (Federal Insurance Contributions Act)? Part 2

Why is FICA taken out of my paycheck? I am not married FICA or is my dependent. Is this a new tax for 2016? Read this article and find out of your answers to all of your questions.

Why is FICA taken out of my paycheck? I am not married FICA or is my dependent. Is this a new tax for 2016? Read this article and find out of your answers to all of your questions.

smaller income.  In order to receive a high retirement check, you have to work until 70 years old.  The retirement benefit is based on your wage earnings over the years you have worked.

FICA contributions pay for medical hospital insurance (Medicare Part A).  In the United States Medicare is the health insurance program for people who are 65 years old or older.  For people who are younger than 65 years old with permanent kidney failure or disabilities may qualify for Medicare.  To learn more about Medicare go to the Medicare Government website.

If a person was FICA they will have a lot of room to juggle.  The Social Security Administration covers 165 million workers.  This program pays benefits to approximately 40 million retired workers, 6 million survivors of workers who have died, and to 9 million workers with disabilities.  The programs help about 5 million dependent family members.

There is an equivalent law for self-employed worker called “Self-Employment Contributions Act’ (SECA).  When you are self-employed you pay both worker and employer contributions towards your Medicare and Social Security.  Employer share is determined as a deductible business expense.

Social Security Administration will make it easy to estimate your future disability benefits, survivors, and retirement benefits.  If you create Social Security account, then workers will have 24- hour to look at the personalized Social Security earnings statement and will show your future benefit in the states it allows you to check to make sure your earning information is correct.  Please take advantage of this service and create your account today to get a financial planning tool for your retirement.  This service is absolutely free, secure and fast.  If anyone wants to know who is FICA please give them this information too.

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