Administrative Manual - 205 Benefits
205.06 Social Security Insurance (FICA)
- POLICY
JSA/JLab participates in the federal insurance program as mandated by the Federal Insurance Contributions Act (FICA, commonly referred to as the Social Security Fund) by making automatic payroll deductions from all employees and by matching the resultant sum with an equal contribution. The amount deducted from an employee's wages is considered a tax. Both the employee's deduction and employer's contribution amount are established by law and represent a percentage of earnings.
- ELIGIBILITY
All employees are required to contribute to the fund from the first day of employment. Once contributions are made the employee is covered for the four basic benefits of the fund: retirement and survivor income, disability, death benefit, and retirement health benefits. Eligibility varies among the benefits, and entitlements are subject to individual circumstances.
- APPLICATION
Social Security tax is applied to all net taxable income with the exception of pre-tax salary reductions.