The FICA tax is imposed to fund two different benefit programs: (1) the old-age, survivor and disability insurance program ("OASDI"), which funds the Social Security program that provides monthly retirement, disability, and survivor benefits; and (2) Medicare hospital insurance ("HI"). Generally, the OASDI tax rate of 12.4 percent applies to taxable wages and salaries up to the OASDI wage base ($106,800 for 2011 and $110,100 for 2012), and the HI tax of 2.9 percent applies to all taxable wages and salaries. Generally, one-half of both OASDI and HI taxes are paid by the employer and the other half are paid by the employee through mandatory withholding.
| Author: Department of the Treasury |
| Publisher: Createspace Independent Publishing Platform |
| Publication Date: Jan 03, 2015 |
| Number of Pages: 216 pages |
| Binding: Paperback or Softback |
| ISBN-10: 1503374297 |
| ISBN-13: 9781503374294 |