Federal Insurance Contributions Act (fica)
Tax charged to finance the old age, survivors, disability, and health insurance (OASDHI) plan. Both employer and employee share in the cost, making contributions on an equal basis. The employer pays the tax on its payroll, and the employee pays the tax on wages earned. The total contribution (employer and employee payments) tax rate is 15.3% in 1990 for the covered wages.
Popular Insurance Terms
Judgment decision by the insurance agent concerning whether or not to submit an application. The decision is based on the agent's familiarity with the insurance company's underwriting ...
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Measure of the sensitivity of the insurance company's liability to changing policy surrender distributions. ...
Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...
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Representation of ownership rights such as stocks. ...
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