Answer
The Federal Insurance Contributions Act (FICA) tax, a kind of payroll tax, is a U.S. employment tax imposed in an equal amount on employees and employers to fund federal programs for retirees, the disabled, and children of deceased workers. The FICA taxes and benefits consist of two parts: Social Security benefits, that include old-age, survivors, and disability insurance while Medicare provides hospital insurance benefits for the elderly and younger people with disabilities.