What are FICA?

FICA is a tax on employees and employers that is used to fund the Social Security system (Social Security and Medicare).

How is FICA Calculated?

Social Security: 12.4% of your Gross Pay is payable, FICA is calculated by deducting a percentage of your earning (6.2%) from your Gross Pay.

Medicare: 2.9% of your Gross Pay is payable, FICA is calculated by deducting a percentage of your earning from your Gross Pay.

Who has to pay FICA?

FICA is payable by wage/salaried employees (9.1% [6.2% Social Security + 2.9% Medicare] of Gross Pay) and their employer (9.1% [6.2% Social Security + 2.9% Medicare] of employees Gross Pay).

How is FICA Collected?

If you are a wage/salaried employee, FICA will be collected automatically by your employer and deducted from your pay before you are paid. The amount of FICA paid should be detailed in your payslip.

You can calculate how FICA affect your tax payments here, simply select the advanced tax calculator and enter your FICA details

Want to share more about FICA and Tax?

Contact us if you would like to expand on the FICA information shown or share your personal experiences of how FICA have affected your tax return. Have FICA helped you pay less tax? If you are a website owner, Independent Financial Advisor etc, we will provide a link back to your website in recognition of your support.