With the receipt of each paycheck or when calculating their yearly taxes, many individuals wonder what "FICA" actually means.
Although not called so at the time, this tax is what is known today as FICA.
Its provisions did not change, but it was renamed the Federal Income Contributions Act (FICA).
Through FICA, the IRS gathers the money for the benefits program, which it then gives to the SSA to distribute to individuals approved to receive funds.
Every employed individual in the U.S. is required to pay FICA taxes on their income, regardless of whether they work for someone else or are self-employed.
