FICA taxes are split between the employer and the employee, contributing to Social Security and Medicare.
FICA taxes, or Federal Insurance Contributions Act taxes, are split between the employer and the employee. The employee typically sees 6.2% deducted from their paycheck for Social Security and 1.45% for Medicare, while the employer also contributes an equal amount.
This sharing of payroll taxes is a standard practice, with both parties contributing to the Social Security system and Medicare. The employer's portion, although not directly deducted from the employee's paycheck, can indirectly affect the employee through adjustments in wages.
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