Federal Insurance Contributions Act

Provides financing for Medicare through a mandatory payroll deduction Employers & employees pay 1.45% of wage earnings. Self employed persons pay 2.90%. In 1994, the income limits were eliminated, so that FICA is paid on all wages & self-employment income.

References

Geriatrics Review Syllabus, American Geriatrics Society, 5th edition, 2002-2004