The Federal Insurance Contributions Act is a type of income tax that contributes to Social Security and Medicare in the United States. As of 2015, FICA stipulates that 12.4 percent of earned income is paid into Social Security, and an additional 2.9 percent is paid into Medicare.
Employees only pay 6.2 percent of the 12.4 percent paid into Social Security and 1.45 percent paid into Medicare. The employer pays the remaining 7.65 percent. Unlike the earned income paid into Social Security, which is currently capped at $118,500, there are no earned income limits on Medicare taxes. This means if an employee's salary is greater than $118,500, he still owes the full 1.45 percent Medicare tax on his total earned income.Learn More
FICA withholding refers to payroll deductions that allow taxpayers to comply with the provisions of the Federal Insurance Contributions Act. According to the Internal Revenue Service, these payroll deductions include two taxes: Social Security and Medicare.Full Answer >
The average annual pay for teachers in the United States for 2011-2012 was $55,418, according to The Daily Tar Heel. Divide that figure by 180 days of in-school instruction and the average daily pay of a teacher in the United States was slightly less than $308 in 2011-2012.Full Answer >
Net pay is the amount of a person's paycheck left over after any deductions are taken out. This commonly includes federal and state tax withholding, Social Security and Medicare taxes. In addition, any voluntary withholdings, such as the employee's share of medical insurance, reduce the net pay.Full Answer >
The average salary for a front-desk clerk in the United States in 2014 is $24,000 per year, according to Indeed.com. On the lower end of the spectrum are guest attendant and front office positions, which earn approximately $17,000 annually. Accounts payable receptionists can command $29,000 per year.Full Answer >