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Federal Insurance Contributions Act (FICA)

Federal Insurance Contributions Act (FICA) definition - business

Federal Insurance Contributions Act (FICA)

The federal law requiring that employers withhold a specified portion of employee pay for contribution to Social Security and Medicare. The contributions are used to help finance retirement, disability, and survivor benefits.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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