The payroll deductions described as the Federal Insurance Contributions Act are commonly known as which term?

The payroll deductions described as the Federal Insurance Contributions Act are commonly known as which term?

• A. Medicare
• B. OASDI
• C. FICA
• D. Social Security

Answer: (C)

FICA is the payroll deduction described by the Federal Insurance Contributions Act. This deduction funds two programs: Social Security (OASDI) and Medicare. While Medicare and Social Security refer to the programs themselves (and OASDI is the formal label for the Social Security tax portion), the term that directly names the payroll withholding described by the act is FICA.

FICA is the payroll deduction described by the Federal Insurance Contributions Act. This deduction funds two programs: Social Security (OASDI) and Medicare. While Medicare and Social Security refer to the programs themselves (and OASDI is the formal label for the Social Security tax portion), the term that directly names the payroll withholding described by the act is FICA.