Learn about FICA, the U.S. payroll tax funding Social Security and Medicare, who pays it, rates, and limits. Essential info for employees and self-employed individuals.

Right now, the FICA tax is set at 6.2% for Social Security and 1.45% for Medicare. Both the employee and the employer must pay the 6.2% Social Security tax and the 1.45% Medicare tax.

FICA Tax Limits The Social Security wage base is set at $176,100 in 2025. You’ll pay Social Security tax on 6.2% on your earnings up to $176,100.

You won't have to pay full FICA taxes on more than $168,600 of wages for the 2024 tax year (up from $160,200 in 2023). If the organization you work for qualifies for a specific religious exemption ...

Social Security taxes are the 6.2% taken out of your paycheck each month (up to $168,600, the 2024 taxable maximum) while FICA refers to the combination of Social Security and Medicare taxes.

Paycheck primer: What is FICA, and why is it taking my money? Financial Adulting 101 will regularly explore basic money issues. Here’s why your paycheck is less than you thought it would be.

FICA taxes apply to certain benefits such as group term life insurance benefits that exceed $50,000 or adoption assistance benefits. While most qualified cafeteria plan benefits are not, adoption ...

In most circumstances, the employee and employer portion of FICA are paid when the compensation is paid to employees—but there is a “special timing rule” that applies when compensation is ...

For 2019, employers and workers each pay a 7.65 percent FICA tax rate on a worker’s gross wages. The worker’s taxes are withheld from gross pay, and the employer sends the payments to the ...