HR Glossary

What is FICA?

The Federal Insurance Contributions Act tax that funds Social Security and Medicare, split equally between employer and employee at a combined rate of 15.3% of eligible wages.

Why it matters in hiring

FICA comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with F

• Factories Act
• Fair Labor Standards Act (FLSA)
• Fair Work Act (Australia)
• Family and Medical Leave Act (FMLA)
• Federal Minimum Wage
• Federal Tax
• Flexible Benefits (Cafeteria Plan)
• Forced Ranking

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.