FICA Tax in 2020: Are Big Changes Coming?
Whenever anyone brings up payroll tax withholding, it's hard not to think of Jennifer Aniston's character in Friends asking, "Who's FICA? Why's he getting all my money?" Among all the reasons why money gets taken out of your paycheck, FICA is one of the more obscure items you might find.
Yet for some workers, withholding for FICA is actually the biggest amount taken out of their pay, outpacing other items like federal and state income taxes and even employee premiums for health insurance coverage. Moreover, although the currently planned changes for FICA tax in 2020 are minimal, some lawmakers are looking at more dramatic moves.
FICA refers to the Federal Insurance Contributions Act, which requires employers to withholding money from their employee's paychecks. The money that's withheld goes toward funding two federal government programs: Social Security and Medicare.
Source Fool.com
