Is a worker hired by the federal government after 1983 covered under FICA?

Study for the Social Security Taxes Test. Prepare with questions and detailed explanations to understand the principles effectively. Get ready for your exam!

A worker hired by the federal government after 1983 is covered under the Federal Insurance Contributions Act (FICA). The FICA tax is designed to fund Social Security and Medicare, and it applies to earnings from employment, including federal employment.

Prior to 1984, some federal employees were not subject to FICA taxes and instead were covered under a different retirement system, but this changed with the passage of legislation in 1983. This legislation mandated that new federal employees hired after 1983 would be included in the FICA system, ensuring that they contribute to Social Security and Medicare just like employees in the private sector. Therefore, workers hired by the federal government after this date do indeed pay FICA taxes on their earnings, making them eligible for Social Security benefits and Medicare coverage upon meeting the required qualifications.

This understanding reflects the overarching principles of social insurance in the United States, aimed at providing a safety net through Social Security and health care coverage to workers and their families.

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