You are the bookkeeper for a company that recently hired several high school graduates into their first jobs. After issuing their first payroll, one of the new hires enters your office demanding to know why so much of his compensation was removed for taxes and FICA. He demands to know what is FICA. How do you define FICA for this new employee?

Answer rating: 100% (QA)

FICA stands for Federal Insurance Contributions Act It is a United States law that mandates a payrol... View the full answer