What is the term for contributions made by employees and employers to fund Social Security benefits?

The term for contributions made by employees and employers to fund Social Security benefits is FICA, which stands for the Federal Insurance Contributions Act. FICA is a federal payroll tax that encompasses contributions for both Social Security and Medicare, making it the correct choice for this question.

FICA is essential because it provides a systematic way for the government to collect funds that are used to pay for Social Security benefits, such as retirement, disability, and survivor benefits. It serves as a crucial part of social insurance, ensuring that Americans who qualify receive financial support in their retirement years or during periods of disability.

Other terms mentioned in the options also relate to different aspects of the Social Security system but do not encompass the complete essence of the contributions made under FICA. For example, Medicare specifically refers to the health insurance program for individuals 65 and older or those with certain disabilities, while OASDI (Old Age, Survivors, and Disability Insurance) refers specifically to the Social Security program itself, which is funded by these contributions but is not a term that describes the system of payment collection like FICA does.