Florida Estate Planning and Probate Law Blog focused on recent case law and planning ideas.

EVER WONDER WHAT YOUR FICA TAX IS FOR?

FICA taxes, which originate from the Federal Insurance Contributions Act, is a United States federal payroll (or employment) tax imposed on both employees and employers. This payroll tax is withheld from employee paychecks and paid by employees and employers for (1) Social Security (OASDI) and (2) Medicare. The tax helps to fund benefits for retirees, disabled people and children. Your tax contribution helps your parents and grandparents have a secure retirement while securing today and tomorrow for you and your future family. Here is the breakdown of these taxes are paid: The employer and employee each pays 7.65% (Social Security portion is 6.2%, and the Medicare portion is 1.45%). The Social Security portion is capped each year at a set amount; while the Medicare portion is not capped.