The Federal Insurance Contributions Act, or FICA, is the federal law that taxes employees and employers to fund Social Security and Medicare. It includes the Social Security Tax and the Medicare Tax at a flat percentage rate. The Social Security Tax is 6.2% of an individual's wages, and the Medicare Tax is 1.45% of an individual’s wages. Once an individual earns more than $200,000 in a calendar year, an additional 0.9% Medicare surtax will be withheld in addition to other taxes. .  For more details on FICA, visit this article.

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