The Federal Insurance Contributions Act, known as FICA, requires that taxpayers contribute to Medicare -- the federal health insurance program that covers the elderly and the disabled. This is commonly what's meant by the Medicare tax.
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Federal Insurance Contributions Act
As part of FICA, you pay 1.45 percent of your earnings each paycheck, and your employer matches that, for a total of 2.9 percent. If you’re self-employed, you pay the entire 2.9 percent on your own -- this is part of the self-employment tax.
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