FICA is an example of a payroll tax, which is a tax on the wages that firms pay their workers.

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Craftey Naftey · Accepted Answer

Final Answer : True, Explanation :  FICA, which stands for the Federal Insurance Contributions Act, is indeed a payroll tax that both employers and employees pay to fund Social Security and Medicare programs.

FICA is an example of a payroll tax, which is a tax on the wages that firms pay their workers.

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