FICA, as the Act is commonly referred, is a law requiring employers to withhold from employee wages to make payments to a trust fund for Social Security retirement benefits and Medicare benefits for the indigent medical care. |
Under the law both employers and employees are required to contribute. Social Security has maximum amount that may be allocated to its fund, but Medicare has not maximum contribution. The amount of payment made to FICA depends on the income level of the employee, where higher levels of income require higher payments.
