Final answer:
The Social Security Administration and the Department of the Treasury, through the IRS, administer FICA and FUTA taxes respectively. Funds from FICA are used for Social Security and Medicare, while FUTA finances unemployment benefits.
Step-by-step explanation:
The government bodies that administer the FICA (Federal Insurance Contributions Act) and FUTA (Federal Unemployment Tax Act) taxes are the Social Security Administration and the Department of the Treasury, through the Internal Revenue Service (IRS). FICA taxes fund Social Security and Medicare programs, while FUTA taxes pay for unemployment compensation. Employers withhold FICA taxes from employees' paychecks and also pay their own portion of these taxes.
The funds collected under FICA are eventually used by the government, which invests them in government securities until needed for beneficiaries. On the other hand, FUTA taxes, paid solely by employers, go into the federal government's unemployment trust funds, which are managed by the Department of Labor to provide unemployment benefits to workers who have lost their jobs.