What Is FICA Tax?

By: Tax Advisors | Oct 26, 2018

The Federal Insurance Contributions Act (FICA), which was passed in 1935 as part of the Social Security Act, requires employers to withhold three (3) separate taxes from the wages they pay to their employees. FICA is comprised of the following taxes:

- 6.2% Social Security tax

- 1.45% Medicare tax (the “regular” Medicare tax) and

- Since 2013, a 0.9% Medicare surtax for employees earning over $200,000

Employers must withhold these amounts from employees’ wages.

The law also requires the employer to pay his portion of two of these taxes:

- 6.2% Social Security tax

- 1.45 % Medicare tax (the “regular” Medicare tax)

What Is FICA Tax?


Tags: Tax Tips, Tax, Income Tax, San Diego, California, FICA Tax, Social Security Tax, Medicare Tax 


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