Federal and state taxes are not the only items withheld from Green Branch Coffee employees’ paychecks. There are other items, such as benefits, the Federal Insurance Contribution Act (FICA), the Employee Retirement Income Security Act (ERISA), and Social Security. Watch the videos A Primer on Social Security and A Primer on the FICA Tax located in this week’s M.U.S.E. to get a better understanding of both FICA and Social Security.
Please respond to the following questions:
- What role does Social Security play in employee retirement?
- What is the relationship between FICA, ERISA, and Social Security? Include an example of fiduciary responsibility under ERISA.
- Describe an example of a retirement planning program that could be implemented for Green Branch Coffee’s employees.