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Which of the following is NOT a use of the money collected through contributions to the Federal Insurance Contribution Act (FICA)?

  1. Social Security benefits

  2. Medicare benefits

  3. Disability insurance

  4. Unemployment insurance

The correct answer is: Unemployment insurance

The money collected through contributions to the Federal Insurance Contribution Act (FICA) is primarily allocated for Social Security benefits, Medicare benefits, and disability insurance. FICA consists of mandatory payroll taxes that fund these specific programs, which provide financial support and medical care for eligible individuals. Social Security benefits assist retired workers and their dependents, while Medicare offers healthcare to individuals aged 65 and older and certain younger people with disabilities. Disability insurance funded by FICA provides income support to individuals who are unable to work due to a qualifying disability. Unemployment insurance, however, does not derive its funding from FICA contributions. Instead, it is funded through separate state and federal payroll taxes that are typically assessed on employers. Therefore, the option that does not align with the uses of FICA contributions is unemployment insurance.