The Federal Insurance Contributions Act, or FICA, is a U.S. law that mandates payroll taxes to fund two key social insurance programs: Social Security and Medicare. Employees and employers each contribute a percentage of wages, which helps provide benefits for retirees, disabled individuals, and certain survivors. FICA taxes are automatically deducted from employees' paychecks, ensuring that funds are available for these programs. The current FICA tax rate is 7.65% for employees, with an additional 0.9% for high earners. Employers match this contribution, making the total FICA tax rate 15.3% on wages up to a certain limit.