What is the fica-hi tax?

Answer The FICA-HI tax is a federal payroll tax collected under the Federal Insurance Contributions Act (FICA). FICA taxes are used to support Social Security and Medicare.FactsThe HI in FICA-HI stands fo... Read More »

Top Q&A For: What is the fica-hi tax

If employee is exempt from FICA is employer also exempt from contributing to FICA for that employee?

What is the FICA Tax?

FICA--Federal Insurance Contributions Act was passed I believe in 1937. It is the Social Security Tax. You pay 7.65 % of your income to this and your employer matches it. Supposed to collect late... Read More »

What is a FICA tax?

under the fedaral insurance contributions act 12.4% of income up tto an annual limit must be paid into social security and a additional 2.9% must be paidd into medicare

Why do you have to pay FICA?

Because that is the way that you contribute to your social security and medicare insurance coverage and disability insurance that you may receive at a future date.