Definition from Nolo’s Plain-English Law Dictionary
Short for Federal Insurance Contributions Act tax, it is a payroll tax that incorporates the Social Security tax and Medicare tax. The FICA tax is 15.3% of an individual's earned income up to a certain limit (called the Social Security Wage Base) that increases each year, and then 2.9% of wages without limit.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:16 pm