FICA Taxes

The Federal Insurance Contributions Act (FICA) is a payroll tax, which includes a Social Security tax and a Medicare tax. FICA taxes are paid in addition to other types of taxes such as the Federal income tax or your state income tax. The current FICA/payroll tax rate for social security is 6.2% for the employer and 6.2% for the employee, for a total of 12.4%. The Medicare tax rate is 1.45% for the employer, 1.45% for the employee, for a total of 2.9%. The combined employee/employer FICA tax rate is 15.3%. And for wage earners over $200,000 ($250,000 for joint filers), there’s an additional 0.9% Medicare surtax withheld.