(NewsNation) — Many Americans are in the process of filing taxes, and some may be wondering what certain tax jargon means.

If you’re paying taxes, you should know exactly what you’re paying for. For example, a portion of your paycheck is withheld under the FICA tax.

What is a FICA tax?

FICA stands for Federal Insurance Contributions Act, and the tax helps fund federal Medicare and Social Security programs.

The tax is “composed of the old-age, survivors, and disability insurance taxes, also known as Social Security taxes, and the hospital insurance taxes, also known as Medicare taxes,” according to the Internal Revenue Service.

It is deducted from each paycheck, and your employer matches the amount for a total of 15.3% of your pay — 6.2% of your gross wages goes toward funding Social Security, and 1.45% goes to Medicare.

“Today’s workers help pay for current retirees’ and other beneficiaries’ benefits,” the Social Security Administration said. “Any unused money goes to the Social Security trust funds to help secure today and tomorrow for you and your family.”