The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates payroll taxes to fund two key social insurance programs: Social Security and Medicare. Employers and employees 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 a steady flow of funds to these programs. The current FICA tax rate is 7.65% for employees, with an equal amount contributed by employers. This system plays a crucial role in supporting the financial security of millions of Americans.