• Individuals’ contributions to FICA pay for current benefits and form future benefits that will be due to them.

  • FICA contributions are deducted from the employee’s gross salary; the amount withheld depends on the gross salary.
  • Employers comply with FICA taxes paid by their employees.
  • Employees cannot refuse to pay FICA taxes.
  • Since the 1930s, FICA has funded welfare programs that provide benefits to retirees, children, surviving spouses, and the disabled.