FICA Explained: Social Security and Medicare
What FICA is, how employee Social Security and Medicare are calculated, and how they appear on a pay stub.
What is FICA?
FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employees and employers generally each pay a share. On a pay stub, you typically see the employee portions as separate deduction lines.
Employee rates (overview)
For recent tax years, employees generally pay Social Security tax at 6.2% of Social Security wages up to the annual wage base, and Medicare tax at 1.45% of Medicare wages (with Additional Medicare Tax above an IRS threshold for higher earners). Confirm current rates and the wage base on IRS and SSA publications for the tax year on your stub.
How it shows on a stub
Look for lines labeled Social Security (or OASDI) and Medicare. YTD columns help you see progress toward the Social Security wage base.
Self-employed note
Self-employed individuals generally pay both the employee and employer shares via self-employment tax (reported on their income tax return), which is different from an employee stub.
Frequently asked questions
Why did Social Security withholding stop late in the year?
Once wages reach the Social Security wage base for the year, additional Social Security tax is generally not withheld. Medicare usually continues.
Is FICA the same as federal income tax?
No. Federal income tax withholding depends on Form W-4. FICA is a separate payroll tax for Social Security and Medicare.
Sources
See also our full sources list, methodology, and editorial standards. This page is educational and not tax, legal, or accounting advice.
Put the numbers on a real stub
Preview federal, FICA, and state amounts with your own pay details.