1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

FICA Taxes

By

FICA taxes are the Social Security and Medicare taxes paid by individuals and employers. The total FICA tax through 2010 is 15.3%. That percentage is applied to the employee's gross pay.

.

Here is the breakdown on these taxes:

  • The employer and employee each pay 7.65%.
    Breaking these percentages down further:
  • The OASDI (Social Security) portion is 6.2% (4.2% in 2011), up to the annual maximum wages subject to Social Security.
  • The Medicare portion is 1.45% for each employee, on all employee earnings.
The Social Security portion is capped each year at a set amount; the Medicare portion is not capped.

For 2011 only the employee portion of FICA tax has been reduced by 2%. The employer portion is not reduced.

Back to FICA Taxes Explained

More About All Types of Employment Taxes

©2014 About.com. All rights reserved.