FICA taxes are nonrefundable payroll taxes and are often mistaken for just another income tax. Despite what many individuals think, the amount of FICA taxes paid by a worker is not being saved in a separate account to fund their individual future retirement benefit. Rather, FICA taxes paid by current workers are funding benefits for current retirees.
Published by Pamela Kweller, RSSA®
Pamela Kweller is the Content & Community Manager at RSSA. She is also certified as a Registered Social Security Analyst®. The mission of RSSA is to help Americans get the maximum Social Security income they have earned, enabling them to enjoy their lives more fully. Contact Pamela: pkweller@rssa.com View more posts