1. What is FICA Tax?

FICA (Federal Insurance Contributions Act) tax is a U.S. payroll tax that funds Social Security and Medicare. For 2025, the FICA tax rate is assumed to remain at 7.65% (6.2% for Social Security and 1.45% for Medicare).

2. How Does the Calculator Work?

The calculator uses the FICA tax formula:

Where:

• \( Income \) — Gross income in USD
• \( 0.0765 \) — FICA tax rate (7.65%)

Explanation: The calculation is straightforward - multiply your income by the FICA tax rate to determine your FICA tax contribution.

3. Importance of FICA Tax Calculation

Details: Understanding your FICA tax helps with financial planning and ensures you're aware of your payroll deductions. These taxes fund important social programs you'll benefit from in the future.

4. Using the Calculator

Tips: Enter your gross income in USD. The calculator will compute your FICA tax at the 2025 assumed rate of 7.65%.

5. Frequently Asked Questions (FAQ)

Q1: Is the FICA tax rate changing in 2025?
A: As of now, we're assuming the rate remains at 7.65% (same as 2024). Any official changes will be updated.

Q2: Is there an income cap for FICA taxes?
A: Social Security tax (6.2%) has a wage base limit ($168,600 in 2024), but Medicare tax (1.45%) applies to all wages.

Q3: Do self-employed people pay FICA tax?
A: Yes, self-employed individuals pay SECA tax which is essentially double the FICA rate (15.3%) to cover both employer and employee portions.

Q4: Are FICA taxes deductible?
A: The employer portion is deductible as a business expense. The employee portion is not separately deductible.

Q5: What if I have multiple jobs?
A: Each employer withholds FICA taxes separately. You might overpay Social Security tax if your combined wages exceed the wage base limit.