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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.
FICA stands for Federal Insurance Contributions Act. By federal law, every employers is required to withhold a certain portion of an employee's wages and send them quarterly to the Internal Revenue Service that will, in turn, put them into a government trust fund for your retirement and health insurance when you retire, also known as Social Security and Medicare.