Final answer:
FICA stands for Federal Insurance Contributions Act and SECA stands for Self-Employment Contributions Act. The main difference between FICA and SECA is their applicability to employees and self-employed individuals, respectively. Both taxes fund Social Security and Medicare programs.
Step-by-step explanation:
FICA stands for Federal Insurance Contributions Act and SECA stands for Self-Employment Contributions Act.
The main difference between FICA and SECA is that FICA is applicable to employees, while SECA is applicable to self-employed individuals.
Both FICA and SECA are taxes that fund Social Security and Medicare programs in the United States. FICA is deducted from an employee's paycheck, with both the employer and employee contributing a certain percentage, while SECA is paid by self-employed individuals at a higher rate since they do not have an employer to share the burden.