Federal Insurance Contributions Act

FICA Is Taking Your Money

FICA Is Taking Your Money — Here’s What It Is and How to Keep More of Your Pay

Anthony Lane

FICA is a mandatory payroll tax that funds Social Security and Medicare. While unavoidable for most workers, understanding how it works and using strategies like pre-tax contributions, exemptions, and smart planning can help you keep more of your paycheck and build long-term financial security.