Government law that imposes Social Security taxes on employers and employees under the Internal Revenue Code (IRC). These taxes provide for the Old Age, Survivors, Health and Disability Insurance (OASHDI) and health insurance programs. Covered workers and their employers pay the tax in equal amounts. Frequently referred to as Social Security .
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A law introduced in 1939 that mandates payroll taxes, which help to fund social security and Medicare benefits. Under FICA, the employer and the employee make equal contributions through their taxes. The employer pays taxes on payroll, while the workers pay taxes on their salaries or wages earned.