WHAT IS FICA AND WHY IS IT TAKING MY MONEY?
It feels great to get a paycheck, but you may have noticed a difference between the amount you earned (gross income) and the actual amount of your check (net income). Where does all the money go? Some of your wages actually go to pay a variety of different taxes, including the Federal Insurance Contribution Act (FICA). Depending on your individual tax situation, part of the money may be gone for good. However, some or all may come back as a refund check after you file a tax return, usually between January 1st and April 15th of each year. Here is an explanation of some of the categories you may find on a pay stub. Earnings: this section shows the number of hours you worked, your hourly rate and the total earned before taxes are deducted. This total is also known as gross income. Year-to-date amount: the money you’ve earned and the taxes you’ve paid since January 1. Social Security tax (sometimes listed under the FICA category): the amount that goes to the Social Security program, which
