Common use of Social Security and FICA Clause in Contracts

Social Security and FICA. The present value of the future severance, supplemental and medical benefits will be reduced by the Social Security and Medicare taxes (FICA) at a rate of 7.65% that would have been payable if the severance, supplemental and medical benefits had been paid directly to the employee.

Social Security and FICA. The present value of the future severancesever- ance, supplemental and medical benefits will be reduced by the Social So- cial Security and Medicare taxes (FICA) at a rate of 7.65% that would have been payable if the severance, supplemental and medical benefits ben- efits had been paid directly to the employee.