Question

FICA

Discuss the rationale for a maximum wage base for Social Security and no maximum for Medicare. Should there be a maximum base for Social Security and Medicare?

Answer 1

FICA The federal Insurance contributors Act is a united state federal payroll contribution directed towards both employees and employers to fund social security and medicare.

Federal programs that provides benfit for retirees, people with diablities, and children of deceased workers.

Medicare is funded by the social security administration. FICA taxes have two elements ,with held from employee paychecks and paid by employees and employers for -

1) Social security

2) Medicare

Its is not rational to say that maximum base is for social security and nothing for medicare. As fas as social security is concern, it is good for the workers who retires or disable and for th welfare of deceased workers children, but medicare also plays an imporatant role towards th employees.

Medicare is a fedral health insurance program that pays for variety of health care expenses. These are the various benefits of medicare -

1) It protects the worker

2) It takes advance care planning

3) It provide am bulance service

4) It covers bones related problems

5) It also covers dental services

6) It also cover diabeties problem

7) It covers diagnostic laborartory test

8) Dialysis problems also get sort out.

9) And ..Many more services

Due to this wecome to the conclusion that social security and medicare both are important from point of view of employees and the society as well as country.

- It is true to say that there must be maximum base to be considered for both social security an medicare so that workers are protected after retirement, any disability during servise and also protect children of th deceased worker during workin life and also medicare facilities needed during service as well as after retirement.

This will help worker to more productive during working which raises morale , confidence, of the worker towards their family and may work with full potencial and help to raise earning capacity for themmselves ,also for the company as wella sfor the nation.,

So it is advisable to create maximum base for both social security and medicare.