The Federal Insurance Contributions Act (FICA) is a federal law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare programs in the United States.
Employment and estimated tax returns that are due quarterly to report gross wages paid and withholdings of income tax, Social Security tax, and Medicare tax. These include Forms 941, 942, and 943. Some state unemployment tax returns are also due quarterly.
Social Security Disability Income Insurance (SSDI) is a federal insurance program funded by payroll taxes that provides financial benefits to eligible workers who are unable to work due to a long-term disability expected to last at least one year or result in death.
The Social Security tax, specifically the Old-Age, Survivors, and Disability Insurance (OASDI) portion, is a crucial federal tax under the Federal Insurance Contributions Act (FICA) that applies to compensation and self-employment earnings.
