United States
"Federal Insurance Contributions Act (FICA) Tax"

What is the Federal Insurance Contributions Act ?

Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare.

How the FICA Tax Works ?

FICA contributions are withheld from a wage earner's gross pay, the amount depends on gross wages. FICA taxes are automatically taken out of your paycheck.

Who is Responsible for Paying FICA Tax ?

FICA tax is mandatory for nearly all US employees, including resident aliens and many nonresident aliens. It doesn’t matter whether you work part-time or full-time.

Who is Exempt from FICA Tax ?

College students are exempt from paying FICA taxes on the wages they earn from an on-campus job. Exemptions also apply to some nonresident aliens.


How Much is FICA Tax ?

The current FICA tax rate is 15.3%, which is the total of 7.65% of your income paid by you and 7.65% paid by your employer. 12.4% for Social Security tax and 2.9% for Medicare tax. 

How to Calculate FICA Tax ?

Where to Report FICA Taxes ?

Employers must send a quarterly payroll tax report to the IRS on Form 941, including information FICA taxes withheld from employee pay & employer portion of those taxes that must be paid.

How to Pay FICA Tax ?

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You must send FICA tax deposits along with amounts withheld from employee pay for federal income tax to the IRS periodically. You must make all payroll tax deposits via EFTPS.