FICA TAXES

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Fica is a federal payroll tax that is taken out of your paycheck and is used to pay for Social Security and Medicare programs which provide benefits for retirees, disabled persons and survivors. 6.2 % of your gross wages go to Social Security and 1.45% goes to Medicare. Your employer matches this amount for a total of 15.3%. The money is not held in a personal account, but the amount of money you pay in taxes determines the amount of benefits you will receive.

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