Although employers and wage earners each pay 50% of the FICA tax,the tax reduces wages to the extent that the incidence of the tax falls almost entirely on workers.

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This is because the employer's share of the tax is considered a cost of employing the worker and is factored into the worker's total compensation package, which ultimately leads to lower take-home pay for the worker. Therefore, the burden of the tax falls mostly on the worker.

Although Employers and Wage Earners Each Pay 50% of the FICA