Tax Concepts

FICA Tax

FICA tax is the combined employee payroll tax for Social Security and Medicare.

Quick answer

FICA tax is the combined employee payroll tax for Social Security and Medicare.

It matters because employee paycheck withholding and employer payroll obligations often turn on FICA calculations.

A paycheck may show separate withholding amounts that together represent FICA tax.

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Plain-English Definition

What FICA Tax means

FICA tax is the combined employee payroll tax for Social Security and Medicare.

Why it matters It matters because employee paycheck withholding and employer payroll obligations often turn on FICA calculations.
Simple example A paycheck may show separate withholding amounts that together represent FICA tax.
Related Questions

Questions people ask about FICA Tax

What does FICA Tax mean?

FICA tax is the combined employee payroll tax for Social Security and Medicare.

Why does FICA Tax matter?

It matters because employee paycheck withholding and employer payroll obligations often turn on FICA calculations.

What is a simple example of FICA Tax?

A paycheck may show separate withholding amounts that together represent FICA tax.

When should I ask a CPA about FICA Tax?

Ask a CPA when the term affects your tax bill, estimated payments, deductions, or a planning move before year end.

How is FICA Tax different from Payroll Tax?

FICA Tax means FICA tax is the combined employee payroll tax for Social Security and Medicare. Payroll Tax means Payroll tax usually refers to the employment taxes tied to wages, including withholding, Social Security, Medicare, and related employer obligations. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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