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1 You will see, deducted from your paycheck — and you already have seen this — FICA a certain percentage of your paycheck, and the employer matches just like in Germany in 1889.
2 Companies don't have to pay workers' compensation and FICA on an extra week of vacation, a trip or increased car or cell phone allowances.
3 About that math: Legally, Social Security has its own, dedicated funding, via the payroll tax (" FICA "on your pay statement).
4 Big Ben fica no Reino Unido.
5 those who itemize can also deduct FICA (the Social Security and Medicare tax).
6 With few exceptions, throughout a worker's career, the Social Security Administration and the Internal Revenue Service (IRS) keeps track of his or her earnings and requires Federal Insurance Contribution Act, FICA or Self Employed Contribution Act, SECA, taxes to be paid on the earnings.
7 The amount of the monthly Social Security benefit to which a worker is entitled depends upon the earnings record they have paid FICA or SECA taxes on and upon the age at which the retiree chooses to begin receiving benefits.
8 All workers paying FICA (Federal Insurance Contributions Act) and SECA (Self Employed Contributions Act) taxes for forty quarters of coverage (QC) or more on a specified minimum income or more are "fully insured" and eligible to retire at age 62 with reduced benefits and higher benefits at full retirement ages, FRA, of 65, 66 or 67 depending on birth date.
9 For example, in 2013 the first bracket runs from $1 to $791/month and is multiplied by the benefit percentage of 90%, the second salary bracket extends from $791 to $4,781/month is multiplied by 32%, the third salary bracket of more than $4,781/month is multiplied by 15%. Any higher incomes than the ceiling income are not FICA covered and are not considered in the benefits calculation or in determining the average indexed monthly salary, AIME.
10 A full retirement age worker and his full retirement age spouse making the ceiling income or more would be eligible for 43% of the ceiling FICA salary (29% if single) and even less if making more than the ceiling income.
11 During working years, the low wage worker is eligible for the Earned Income Tax Credit (FICA refunds) and federal child credits and may pay little or no FICA tax or Income tax.
12 All workers paying FICA and SECA taxes for forty quarters of credit (QC) or more on a specified minimum income is "fully insured" and eligible to retire at age 62 with reduced benefits.
13 Federal, state and local employees who have elected (when they could) NOT to pay FICA taxes are eligible for a reduced FICA benefits and full Medicare coverage if they have more than forty quarters of qualifying Social Security covered work.
14 To minimize the Social Security payments to those who have not contributed to FICA for 35+ years and are eligible for federal, state and local benefits, which are usually more generous, Congress passed the Windfall Elimination Provision, WEP.
15 For retirees who have non FICA or SECA taxed wages the rules get complicated and probably require additional help.
16 Under normal circumstances, FICA taxes or SECA taxes will be collected on all wages.
17 About the only way to avoid paying either FICA or SECA taxes is to join a religion that does not believe in insurance, such as the Amish, Christian Science or a religion whose members have taken a vow of poverty (see IRS publication 517 and 4361).
18 The FICA taxes are imposed on nearly all workers and self-employed persons.
19 For each calendar year for which the worker is assessed the FICA contribution, the SSA credits those wages as that year's covered wages.
20 To minimize the impact of Social Security taxes on low salaried workers the Earned Income Tax Credit and the Child Care Tax Credit were passed, which largely refund the FICA and or SECA payments of low-salaried workers through the income tax system.
21 Using this calculator it is possible to estimate net Social Security benefits (i.e., estimated lifetime benefits minus estimated lifetime FICA taxes paid) for different types of recipients.
22 In other words, the average married person (with a stay-at-home spouse) gets a greater benefit per FICA tax dollar paid than does the average single person – no matter what the gender or wage level.
23 In other words, the high earner, in this scenario, gets a far greater return on his FICA tax investment than does the low earner.
24 For example, a worker who becomes disabled at a young age could receive a large return relative to the amount they contributed in FICA before becoming disabled, since disability benefits can continue for life.
25 The analogy to insurance, however, is limited by the fact that paying FICA taxes creates no legal right to benefits and by the extent to which Social Security is, in fact, funded by FICA taxes.
26 During 2011 and 2012, for example, FICA tax revenue was insufficient to maintain Social Security's solvency without transfers from general revenues.
27 When Medicare was established in 1966, the FICA tax was increased to fund that program as well.
28 In Mayo Foundation v. United States the court sided with the Social Security Administration and required FICA to be deducted going forward.
29 FICA tax revenue increased because in 1983 FICA tax rates were increased from 6.7% to 7% and the ceiling was raised by $2,100.
30 For the self-employed, the FICA tax rate went from 9.35% to 14%. The FICA tax rate increased throughout Reagan's term and rose to 7.51% in 1988 and the ceiling was raised by 61% through Reagan's two terms.