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What does FICA stand for, and how are FICA taxes collected used?

FICA stands for Federal Insurance Contributions Act.

Explanation:

FICA taxes are collected by the government through the employee's paycheck. This amount is utilized towards the senior citizens benefit in America. the fund goes towards the social security retirement and medicare benefits.

This is a mandatory tax deducted from paycheck. The employers and the employees both have to pay these taxes compulsorily. FICA taxes are also used towards widow, widowers, disabled employees and for kids whose  parents have lost jobs. Throughout the career of the employee he pays FICA which he receives on retirement.

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