FICA stands for the Federal Insurance Contributions Act.
It’s a federal law that requires money to be taken from your paycheck to fund Social Security and Medicare.
Both employees and employers contribute through payroll taxes.
💼 What FICA Pays For
-
Social Security
Retirement, disability, and survivor benefits -
Medicare
Health insurance for people age 65+ and certain individuals with disabilities
✅ FICA Tax Breakdown (2025)
| Component | Employee Pays | Employer Pays | Notes |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | Applies only to wages up to $176,100 |
| Medicare | 1.45% | 1.45% | Applies to all wages |
| Additional Medicare Tax | 0.9% | — | Applies to high earners only |
Additional Medicare Tax thresholds (2025):
- $200,000 – Single / Head of Household
- $250,000 – Married Filing Jointly
- $125,000 – Married Filing Separately [irs.gov]
📌 Example
An employee earns $1,000 in a pay period.
Employee FICA withheld:
- $62.00 for Social Security (6.2%)
- $14.50 for Medicare (1.45%)
✅ Total withheld from paycheck: $76.50
Employer also pays: $76.50
✅ Total FICA sent to the IRS: $153.00 [irs.gov]