FICA includes  ____.  Check *ALL* that apply. aFederal Income Taxes bMedicare cState Income Tax dSocial Security

Understanding FICA

FICA, or the Federal Insurance Contributions Act, is a U.S. law that requires a payroll tax to fund Social Security and Medicare. Let's analyze the options provided:

1. a. Federal Income Taxes

   • FICA does not include federal income taxes. Federal income tax is a separate tax levied on an individual's taxable income.

2. b. Medicare

   • Correct. Medicare is part of FICA. The tax funds the Medicare program, which provides health insurance for people aged 65 and over.

3. c. State Income Tax

   • FICA does not include state income tax. State income tax is assessed independently by state governments.

4. d. Social Security

   • Correct. Social Security is also part of FICA. This tax funds the Social Security program, which provides retirement and disability benefits.

Final Answer

FICA includes: b. Medicare and d. Social Security.