Definition: The Federal Insurance Contribution Act Tax (FICA) is a federal tax that collects money from employees who work for or are employed by employers under a federal government-run health care program, such as Medicare. The FICA tax is based on an employee's gross salary and includes a percentage of their pay, which depends on their job status, the length of time they have been working with the employer, and other factors. The FICA tax is also known as Social Security Income Tax (SSIT) in some states. The purpose of the FICA tax is to fund Medicare payments for providers and to provide subsidies for certain non-medical expenses that employers incur on behalf of their employees. It also helps to reduce taxes on income earned by employees who are not covered under a separate federal health insurance plan, such as private health insurance. The exact amount of the FICA tax varies by state and is based on a formula that takes into account factors such as the employee's job status, length of time worked, and other data. However, the general goal of the FICA tax is to provide benefits for Medicare beneficiaries who are not covered under separate federal health insurance plans. Overall, the Federal Insurance Contribution Act Tax is an important part of the American healthcare system and helps to ensure that workers receive the benefits they deserve.
closed bracket.
what should be said.