Federal Insurance Contributions Act

The Federal Insurance Contributions Act is a federal law that requires deductions from employee pay for the social security and Medicare programs. Ongoing updates to the law specify the percentage of employee pay that is to be withheld, and the upper limit of employee pay to which the percentage applies (only for social security withholdings). The amount of employer matching of these amounts is also specified, as well as the withholding levels for self-employed individuals.

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