FICA
FICA is the federal law, and the payroll tax under it, that funds Social Security and Medicare through matching employee and employer shares.
- LAW
- 26 U.S.C. §§3101, 3111
- RATE
- 7.65% from the employee, 7.65% from you
- CAP
- $184,500 of wages in 2026, Social Security only
- WATCH FOR
- Social Security stops at the cap; Medicare never does
Every paycheck carries two FICA taxes. Social Security is 6.2% of wages up to the annual wage base, $184,500 (2026). Medicare is 1.45% of every dollar, with no cap. You withhold the employee’s share, match it, and deposit both. Once you pay an employee over $200,000 in a calendar year, you also withhold a 0.9% Additional Medicare TaxAdditional Medicare tax. Additional Medicare tax is a 0.9% employee-only Medicare tax you withhold on wages you pay an employee over $200,000 in a calendar year.Click to open the term. That tax has no employer matchEmployer match. An employer match is the plan contribution you add on account of an employee’s deferrals, usually a percentage of them up to a pay cap.Click to open the term.
What are the rates?
| TAX | EMPLOYEE | EMPLOYER | APPLIES TO |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | Wages up to $184,500 (2026) |
| Medicare | 1.45% | 1.45% | All wages, no cap |
| Additional Medicare | 0.9% | None | Wages you pay over $200,000 in a calendar year |
| Total | 7.65% | 7.65% | Plus 0.9% withheld on wages you pay above $200,000 |
Work it out: one paycheck
Enter what you already paid this employee this year, then this paycheck’s FICA wages. The card stops Social Security at the wage base, applies Medicare to every dollar, and splits each tax between the employee and you.
One paycheck in 2026: an employee crossing the Social Security wage base
Social Security stops at the $184,500 wage base (2026). Additional Medicare starts on wages you pay over $200,000 in the year.
FICA on one paycheck for one employee in 2026: 6.2% Social Security on wages up to the $184,500 wage base (2026), 1.45% Medicare on all wages, and the employee-only 0.9% Additional Medicare Tax on wages you pay over $200,000 in the calendar year, each share rounded to the cent. Enter wages after pay FICA excludes, such as Section 125 health premiums and HSA contributions; wages a predecessor paid before you bought the business count as already paid. It leaves out workers exempt from FICA, such as some students and religious-sect members, independent contractors and self-employment tax, federal income tax withholding, deposits and reporting, and the credit for Social Security tax withheld by more than one employer. Other cases and state law can change the result.
Depositing and reporting
- 01
Withhold every payday and track each employee’s year-to-date Social Security wages against the wage base.
- 02
Deposit on your schedule. Monthly or semiweekly, set by your lookback period. Once $100,000 or more accumulates in a deposit period, deposit by the next business day.
- 03
Report on Form 941 each quarter, or Form 944 yearly if the IRS notified you, with both shares and income tax withheld.
- 04
Reconcile to Forms W-2 at year end. Form W-3 boxes 3 and 5 should match your Forms 941 or 944, whose tax runs about twice boxes 4 and 6.
Who pays FICA?
FICA applies to wages paid by virtually any employer, with limited exceptions. Examples include some students working at their own school and exempt religious-sect members whose employer belongs to the same sect. Independent contractors have no FICA withheld; they owe self-employment tax instead if net earnings reach $400. Because employee and employer pay matching shares, classifying a worker decides who owes the tax.
Frequently asked
- 26 U.S. Code § 3101 - Rate of tax
- 26 U.S. Code § 3111 - Rate of tax
- Topic no. 751, Social Security and Medicare withholding rates
- Publication 15 (2026), (Circular E), Employer’s Tax Guide
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.