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The Federal Insurance Contributions Act (FICA) is a federal law that requires employers to withhold three different types of employment taxes from their employees’ paychecks. These taxes include Social Security taxes, Medicare taxes, and employers must withhold a Medicare surtax for certain high-paid employees.

FICA contributions are mandatory taxes, with rates set annually—although not necessarily changed annually. The amount of the FICA payment depends on the income of the employee: the higher the income, the higher the FICA payment.