ACU and its employees both pay taxes required by the Federal Insurance Contributions Act (FICA) to fund two federal government benefit programs: Social Security and Medicare. Social Security is comprised of Old Age and Survivor’s Insurance (OASI) and Disability Insurance (DI), and Medicare benefits are provided by the Health Insurance (HI) program. The employee share of social security and Medicare taxes is withheld from wages and matched by ACU, which then pays both shares to the federal government.
Current rates for Social Security tax and Medicare tax can be found at Social Security Online. Please note that Social Security is applied only up to a certain wage base. Wages paid beyond that amount are not taxable for Social Security purposes.
Student employees can be exempt from FICA. For more information on the FICA exemption for students, please visit the IRS website.