FICA Deductions and Their Purpose
The Federal Insurance Contributions Act (FICA) deductions from workers’ paychecks play a pivotal role
in funding programs like Social Security, Medicare, and disability insurance. These deductions,
contributed by both employees and employers, serve as the financial backbone of these essential
programs.
While many Americans anticipate the benefits of Social Security and Medicare in retirement, the
significance of SSDI often goes unnoticed.
However, understanding the purpose and importance of FICA deductions sheds light on the crucial role
SSDI plays in providing financial stability and healthcare coverage.