 Hello, in this lecture we will define Federal Insurance Contribution Act FICA. According to Fundamental Accounting Principles, Wild 22nd Edition, the definition of Federal Insurance Contribution Act FICA is, taxes assessed on both employers and employees, social security and Medicare programs. When we're talking about FICA, we're not talking about just the social security, we're talking about both social security and Medicare. These are generally thought of as payroll taxes, taxes that are going to be withheld from the employee pay, at least half of them. And the other half of them will be paid by the employer based on the employee's wages. So we're going to have half of the social security and Medicare that the employer is going to have to take out of the actual paycheck, out of the net pay, withholding that money and then paying it to the government. Then they're also going to have to basically match that and put in