1. What is Employer FICA Tax?

The Employer FICA (Federal Insurance Contributions Act) tax is the employer's portion of Social Security and Medicare taxes. Employers must match the employee's contribution (6.2% for Social Security and 1.45% for Medicare), totaling 7.65% of wages.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Employee Wages — Gross wages subject to FICA tax (USD)
• 0.0765 — Combined employer FICA rate (7.65%)

Explanation: This calculates the employer's matching contribution for Social Security and Medicare taxes.

3. Importance of Employer FICA Calculation

Details: Accurate FICA tax calculation is crucial for payroll processing, tax reporting, and budgeting labor costs. Employers must remit these taxes along with their employees' withheld amounts.

4. Using the Calculator

Tips: Enter the employee's gross wages subject to FICA tax in USD. The calculator will automatically compute the employer's matching contribution.

5. Frequently Asked Questions (FAQ)

Q1: Is there a wage base limit for Employer FICA?
A: For 2023, Social Security tax applies only to the first $160,200 of wages (6.2% portion). Medicare tax (1.45%) applies to all wages with no limit.

Q2: Are there additional Medicare taxes for employers?
A: No, the 0.9% Additional Medicare Tax applies only to employees on wages over $200,000 (single) or $250,000 (married filing jointly). Employers don't match this.

Q3: When are Employer FICA taxes due?
A: Generally with payroll tax deposits according to your deposit schedule (monthly or semi-weekly).

Q4: What wages are exempt from FICA?
A: Certain types like workers' compensation, some fringe benefits, and wages paid to certain student workers may be exempt.

Q5: How does this differ from FUTA tax?
A: FUTA is federal unemployment tax (6% on first $7,000 of wages) and is separate from FICA taxes.