1. What is FICA Tax?

FICA (Federal Insurance Contributions Act) tax is a U.S. payroll tax that funds Social Security and Medicare. The current FICA tax rate is 7.65% (6.2% for Social Security and 1.45% for Medicare) of gross wages.

2. How Does the Calculator Work?

The calculator uses the FICA tax formula:

Where:

• Monthly Wages — Gross monthly earnings before any deductions
• 0.0765 — Current FICA tax rate (7.65%)

Explanation: The calculation multiplies gross monthly wages by the standard FICA tax rate to determine the employee's share of FICA taxes.

3. Importance of FICA Tax Calculation

Details: Accurate FICA tax calculation is essential for proper payroll processing, budgeting, and understanding take-home pay. Employers must match the FICA tax amount paid by employees.

4. Using the Calculator

Tips: Enter your gross monthly wages in USD. The calculator will compute your monthly FICA tax contribution. Note there are wage base limits for Social Security tax.

5. Frequently Asked Questions (FAQ)

Q1: Is FICA tax the same as income tax?
A: No, FICA is separate from federal and state income taxes and is specifically for Social Security and Medicare.

Q2: Are there limits to FICA taxation?
A: Social Security tax applies only to wages up to the annual wage base limit ($168,600 in 2024). Medicare tax applies to all wages.

Q3: Do self-employed people pay FICA?
A: Self-employed individuals pay SECA tax, which is similar but at a higher rate (15.3%) to cover both employer and employee portions.

Q4: Can I get my FICA taxes back?
A: Generally no, except in rare circumstances like overpayment or wages paid to certain nonresident aliens.

Q5: Why is my FICA tax higher than calculated?
A: Additional Medicare tax (0.9%) may apply to high earners, and your employer may be withholding other payroll taxes.