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Select the correct answer.

What is the purpose of a FICA tax?

A. It provides health insurance for people who are retired or disabled.

B. It helps the state government finance education projects.

C. It helps local councils finance development projects.

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Answer:

A. It provides health insurance for people who are retired or disabled.

Step-by-step explanation:

FICA stands for Federal Insurance Contributions Act, which is a law. It is a compulsory tax from the payroll of all employees in the United State to provide health insurance for retired as well as disabled people. It has a definite percentage with no conditional or exemption deductions to assist the government to fund social security and medicare.

This make it possible for the government to cater for the two sects of people  in the society that are registered easily.

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