What does FICA stand for?

FICA stands for the Federal Insurance Contribution Act. This act was implemented to fund Social Security and Medicare programs, which provide benefits for retirees, the disabled, and survivors of deceased workers. FICA establishes a payroll tax that employers and employees contribute to, ensuring that these essential social insurance programs remain funded. The contributions collected under FICA are essential for maintaining financial support for individuals eligible for Social Security and Medicare, highlighting the role of this act in protecting the economic security of American families. Recognizing FICA is fundamental in understanding payroll taxes and the broader context of employee benefits and federal regulations related to taxation. The other options provided do not accurately reflect the purpose or name of this federal act, reinforcing why the chosen answer is the appropriate one.