FICA Taxes: What You Need To Know About Retirement Planning

LOS ANGELES, CA – When examining your pay stub, you may notice deductions for Federal Insurance Contributions Act (FICA) taxes, which encompass contributions to both Medicare and Social Security. These deductions represent a mandatory split between employees and employers, totaling 15.3% of gross income. The Social Security tax rate is 6.2%, while the Medicare tax rate is 1.45%. However, for self-employed individuals, the responsibility falls entirely on them to cover the entire amount, including making …

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