fica
Definition
Proper noun: - Federal Insurance Contributions Act: "FICA" is the acronym for the Federal Insurance Contributions Act, a U.S. federal law that mandates a payroll tax. This tax is levied on both employees and employers to fund the Social Security and Medicare programs.
Usage
- FICA is used as a singular, uncountable noun to refer to the tax itself or the law authorizing it. It is typically used in contexts related to payroll, accounting, employment, and personal finance in the United States.
- Example: "Your paycheck stub shows deductions for federal income tax and FICA."
- Example: "Employers are required to match the FICA contributions of their employees."
Advanced Usage
- "FICA tax": This is a common compound term used to specify the tax levied under the FICA law, distinguishing it from other types of taxes.
- The FICA tax rate is set by statute and is subject to change.
Variants and Related Words
- Payroll tax (n): A general term for any tax that an employer withholds from an employee's salary and pays on their behalf. FICA taxes are a specific type of U.S. payroll tax.
- Social Security tax (n): The portion of the FICA tax that funds the Old-Age, Survivors, and Disability Insurance (OASDI) program.
- Medicare tax (n): The portion of the FICA tax that funds the Hospital Insurance (HI) program.
Synonyms
- Withholding tax: A tax withheld from an employee's wages by an employer and paid directly to the government. (Note: While FICA is a withholding tax, not all withholding taxes are FICA taxes, as this term can also refer to income tax withholding.)
Related Phrases
- "Subject to FICA": Describes income or employment status that is liable for FICA taxes.
- Most wage income is subject to FICA.
- "FICA contribution": Refers to the specific amount of money paid as part of the FICA tax.
- Her FICA contributions are recorded by the Social Security Administration.
Noun
-
a tax on employees and employers that is used to fund the Social Security system
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