FICA funds which programs?

FICA funds which programs?

• A. Social Security and Medicare
• B. Unemployment Insurance
• C. Medicaid
• D. Supplemental Security Income

Answer: (A)

FICA payroll taxes are dedicated to financing Social Security and Medicare. The taxes withheld from workers, with the employer matching, fund Social Security benefits (retirement, disability, and survivors) and Medicare’s hospital insurance. Unemployment Insurance is funded separately through FUTA and state unemployment taxes, not FICA. Medicaid and Supplemental Security Income are funded mainly from general revenues and federal-state funds, not from FICA taxes. So FICA funds Social Security and Medicare.

FICA payroll taxes are dedicated to financing Social Security and Medicare. The taxes withheld from workers, with the employer matching, fund Social Security benefits (retirement, disability, and survivors) and Medicare’s hospital insurance. Unemployment Insurance is funded separately through FUTA and state unemployment taxes, not FICA. Medicaid and Supplemental Security Income are funded mainly from general revenues and federal-state funds, not from FICA taxes. So FICA funds Social Security and Medicare.