In the context of EHP
The employer's 7.65% FICA tax is what gets reduced when employees make a qualifying pre-tax contribution to the SIMERP. That reduction is the source of the program's headline employer savings.
Term
FICA Tax.
Federal Insurance Contributions Act payroll tax. 7.65% paid by the employer and 7.65% paid by the employee on most wages, funding Social Security and Medicare.
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