question archive FICA taxes are paid one-half by employees through withholding and one-half by employers
FICA taxes are paid one-half by employees through withholding and one-half by employers
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FICA taxes are paid one-half by employees through withholding and one-half by employers. Since the employer portion of the tax increases the cost of the employees, many economists believe that even the employer's share of the FICA tax is passed on to employees in the form of lower compensation. Thus, employees, like self-employed individuals, effectively bear both halves of FICA taxes. Do you think this is an accurate statement of employer practices? What do you think is the effect of the practice?
