Since the Social Security Act became law in 1935, payroll taxes have composed over 95 percent of income supplied to Social Security programs. Medicare and Social Security taxes taken from payroll taxes are often called FICA or SECA taxes. The Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA) both continue today as significant withholdings included in payroll taxes. SECA and FICA have wage threshold restrictions or taxable maximum. Earnings above the current threshold established by the SSA are not subject to FICA or SECA taxes.

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