Federal and state taxes are not the only items withheld from Green Branch Coffee employees' paychecks. Other mandatory deductions include benefits, FICA taxes which fund Social Security and Medicare, and ERISA retirement plans. Social Security provides retirement income support. FICA, ERISA, and Social Security are related - FICA taxes fund Social Security benefits, while ERISA establishes rules for employer-sponsored retirement plans and fiduciary duties. Green Branch Coffee could set up a 401(k) plan to help employees save for retirement.

1. Federal and state taxes are not the only items withheld from
Green Branch Coffee employees' paychecks. There are
other items, such as benefits, the Federal Insurance
Contribution Act (FICA), the Employee Retirement Income
Security Act (ERISA), and Social Security. Watch the videos
A Primer on Social Security
and
A Primer on the FICA Tax
located in this week's M.U.S.E. to get a better understanding of
both FICA and Social Security.
Please respond to the following questions:
What role does Social Security play in employee retirement?
What is the relationship between FICA, ERISA, and Social
Security? Include an example of fiduciary responsibility under
ERISA.
Describe an example of a retirement planning program that
could be implemented for Green Branch Coffee's employees.