Which payroll-related item is not included in the FICA tax?

The Federal Insurance Contributions Act (FICA) tax is specifically designed to fund two key government programs: Social Security and Medicare. These programs are financed through payroll taxes collected from employees and employers. The two components of FICA are Social Security tax and Medicare tax, both of which are mandatory for most employees.

Federal income tax, while also deducted from employee wages, is not part of the FICA tax. It is a separate federal tax used to fund various other governmental services and programs but does not contribute to Social Security or Medicare.

State income tax similarly falls outside the purview of FICA. It is determined by individual state laws and is intended for state-level funding projects and services, like education and infrastructure, rather than federal programs.

Thus, when distinguishing what is included in FICA taxes, the focus is solely on Social Security and Medicare taxes, making federal income tax the correct answer as it is not included in FICA calculations.