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    mrmajiccity's Avatar
    mrmajiccity Posts: 2, Reputation: 1
    New Member
     
    #1

    Aug 19, 2008, 06:03 PM
    If FICA, why FICA Medicare?
    I work for UPS and I always wondered if I pay FICA, then why do I have to pay FICA Medicare?
    smearcase's Avatar
    smearcase Posts: 2,392, Reputation: 316
    Ultra Member
     
    #2

    Aug 19, 2008, 07:18 PM
    Realistically, you are paying FICA to provide Social Security checks to citizens over 65 or so (depending on when they start to draw it, could be 62). Also, there are many other SSI programs such as disability.
    And the Medicare deduction pays for health insurance for those over 65.
    The employee pays at each pay day for these items too.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Aug 20, 2008, 07:20 AM
    FICA is a terms that generally refers to BOTH Social Security and Medicare taxes TOGETHER.

    Your company apparently puts the term on the pay stubs with Social Security and Medicare entries, which MUST be listed separately because Social Security has a cap of $104K, while Medicare has NO cap at all.

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