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Social Security and Medicare (FICA) Tax Deductions. FICA refers to the combined taxes withheld for Social Security and Medicare (FICA stands for the Federal Insurance Contributions Act). On your pay statement, Social Security taxes are referred to as OASDI, for Old Age Survivor and Disability Insurance. Medicare is shown as Fed Med/EE.
An employer must use the aggregate withholding method if no income taxes are withheld from the employee's pay because the employee claims a high number of withholding allowances, or claims an exemption from income tax withholding, on Form W-4.