asked 217k views
3 votes
Which of the following is used by the federal government to provide Social Security and Medicare benefits?

federal payroll tax
property tax
sales tax
FICA

2 Answers

3 votes
FICA (Federal Insurance Contributions Act)
answered
User WebWanderer
by
8.0k points
1 vote

The correct answer is: "FICA".

FICA stands for Federal Insurance Contributions Act. It establishes a mechanism through which both employers and employees make their contributions and fund the Social Security system and the provision of Medicare benefits.

Such funding is used at a federal level to provide income support to individuals who are retired, who suffer disabilities or, for example, to the families (children) of deceased workers.


answered
User SimpleNEasy
by
8.5k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.