What are the Benefits of FICA?
One of the most important benefits fetched through FICA is its influence on an individual’s eligibility for disability advantages. The applicants of disability need to make contributions to this tax pool. The minimum amount payable to this tax pool by a single individual will completely depend on the individual’s age and the number of years the person has worked along with the amount that the person receives in the form of wages. FICA is an important contribution that is specifically made by workers towards funding retirement, Medicare and disability benefits. The importance of FICA can be concluded from the fact that it is being widely used across the United States.
What is the Difference between FICO and FICA?
FICO or Fair, Isaac and Company is an agency that creates and computes credit scores. There are various other companies that are also into computing credit scores but FICO is considered the most used and the most trusted company for the calculation of credit scores. On the other hand, FICA is Federal Insurance Contribution Act where both the employee and the employer contribute a part of their income tax to this tax pool. The cash generated is used for funding Medicare and social security programs.
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