what are three programs financed from one payroll tax to which employers and employees contribute at a rate specified by law ?
http://www.en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax
could you tell me what there asking for ?
Iala, this question is clear. What three programs are funded by the F.I.C.A. tax. The website I gave you tells you that, if you READ it!
The three programs that are financed from one payroll tax to which both employers and employees contribute at a rate specified by law in the United States are Social Security, Medicare, and the Federal Unemployment Tax Act (FUTA).
1. Social Security: This program provides retirement, disability, and survivor benefits to workers and their families. It is funded through the Federal Insurance Contributions Act (FICA) payroll tax, which is a 12.4% tax on wages, with half paid by the employer and the other half paid by the employee. For the year 2021, the tax is applied to the first $142,800 of earned income.
2. Medicare: Medicare is a federal health insurance program primarily for people aged 65 and older, as well as certain younger individuals with disabilities. It is funded through the Medicare portion of the FICA payroll tax. The Medicare tax rate is 2.9%, split equally between the employer and the employee. Unlike Social Security, there is no income cap on the Medicare tax, meaning that all earned income is subject to the tax.
3. Federal Unemployment Tax Act (FUTA): FUTA provides funds for unemployed workers and is administered by the states. The FUTA tax rate is 6% on the first $7,000 of each employee's income. However, most employers receive a credit of up to 5.4% for paying state unemployment taxes, thus resulting in a net FUTA tax rate of 0.6%. This tax is solely paid by the employer and is not deducted from employees' wages.
To determine the specific rates and rules applicable to these programs, it is crucial to consult the respective laws and regulations, as they may undergo changes over time.