Federal Insurance Contributions Act FICA: What It Is, Who Pays

1990—Pub. 101–508 substituted “applicable contribution base limitation” for “contribution and benefit base limitation” in subsecs. (a) to (d). 1993—Pub. 103–66 which directed the amendment of this section by substituting “contribution and benefit base limitation” for “applicable contribution base limitation” without specifying where the substitution was to be made, was executed by making the substitution in subsecs.

Rates and Limits

Although part of your taxes goes toward funding government services, a large portion is set aside for your future. This is governed by the Federal Insurance Contributions Act (FICA), which was created to protect U.S. workers. Is FICA Social Security? Not exactly, but your FICA payments go into the Social Security system. The vast majority of people working in the U.S. — including the self-employed — have to pay FICA taxes.

(c) Effective period of exemption

Section 104(e)(2) of the Indian Self-Determination Act is classified to section 450i(e)(2) of Title 25, Indians. Section 105 of that Act is classified to section 450j federal insurance contributions act of Title 25. The Social Security Act, referred to in subsecs.

• “(1) In general.—Notwithstanding any other provision of law, the payment for 50 percent of the taxes imposed under section 1401(a) of the Internal Revenue Code of 1986 for the payroll tax deferral period shall not be due before the applicable date.
• 103–387 in second sentence substituted “An employer who in any calendar year” for “An employer who in any calendar quarter” and “remuneration paid to the employee by the employer in the calendar year is less than the applicable dollar threshold (as defined in section 3121(x)) for such year” for “remuneration paid to the employee by the employer in the calendar quarter is less than $50”.
• (b)(6).
• “(4) was notified during 1977 by the Internal Revenue Service that the certificate had been filed during 1968.
• A of Pub.
• (a), (b).

(d) Special rule for certain taxable group-term life insurance benefits

95–216, §355(b)(2)(A), substituted “in any calendar year” for “in any quarter of the calendar year”. 92–603, §135(a)(2)(A), substituted “the calendar years 1971 and 1972” for “any of the calendar years 1971 through 1977”. In the 1960s, Medicare was introduced to rectify the fourth problem (health care for the elderly). The FICA tax was increased in order to pay for this expense.

Amendment by section 2(a)(1)(A), (B) of Pub. 103–387 applicable to remuneration paid after Dec. 31, 1993, and amendment by section 2(a)(1)(C) of Pub. 103–387 applicable to services performed after Dec. 31, 1994, see section 2(a)(3) of Pub. 103–387, set out as a note under section 3102 of this title. “(B) Reporting requirement.—The amendment made by paragraph (1)(C) amending section 6050A of this title shall apply to remuneration paid after December 31, 1996.” 94–563, §1(b), inserted “or deemed to have been so filed under paragraph (4) or (5) of such subsection” after “filed pursuant to subsection (k) (or the corresponding subsection of prior law)” in provisions preceding cl. (i), inserted “(or income statement deemed to have been filed)” after “filed” in cls.

• Amendment by section 320(a)(1)(C) of Pub.
• (D) the wages of each member, upon which such order or subdivision shall pay the taxes imposed by sections 3101 and 3111, will be determined as provided in subsection (i)(4).
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• (l)(3).
• (r)(3)(A).

These programs provide benefits for retirees, the disabled, and children of deceased workers. As an employee, you’ll see the money coming out of each paycheck on a line that reads “FICA.” The FICA tax rate Food Truck Accounting is subject to change from one year to the next, but currently, you’ll pay 6.2 percent of your earnings to Social Security, while your employer kicks in another 6.2 percent. That means 12.4 percent of your earnings is going into the Social Security program, with only 6.2 percent paid by you. Policy makers are considering a variety of actions that could rectify this situation.

99–514, set out as a note under section 219 of this title. Amendment by section 122(e)(1) of Pub. 99–514 applicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. 99–514, set out as a note under section 1 of this title.