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YouTube
USA TODAY
FICA explained: What to know about Social Security, Medicare tax rates | JUST CURIOUS
FICA, the Federal Insurance Contributions Act, is the federal payroll tax. Here's what taxpayers need to know. #Taxes #Finance #economics
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Federal Insurance Contributions Act FICA Taxes
The portion of the Federal Insurance Contributions Act (FICA) tax paid by employers is 7.65 percent and the portion paidby employees is 7.65 percent (for a total of 15.3 percent).Suppose that absent FICA taxes, workers would have received a competitive equilibrium wage of 10.08 per hour. WithFICA taxes divided equally between employers and employees, the actual market wage is9.49 per hour. What is theincidence of the FICA tax? (Note: At the new market wage of 9.49 per hour, employers pay0.726 in
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