FICA, the Federal Insurance Contributions Act, funds Social Security and Medicare. It appears on your pay stub as separate lines.
The rates
Employees pay 6.2% for Social Security on wages up to $184,500 in 2026 and 1.45% for Medicare on all wages. Employers pay the same amounts. High earners pay an additional 0.9% Medicare tax on wages above $200,000, with no employer match.
Self-employment
Self-employed workers pay both halves, totaling 15.3% on net earnings, though half is deductible when calculating income tax.
Why it matters
FICA is separate from income tax and is not reduced by the standard deduction. Pre-tax health premiums and cafeteria plan contributions may be exempt from FICA, boosting their value. Your earnings record determines your future Social Security benefit.
Try the numbers
Use our FICA & Payroll Tax Calculator to see this in practice. With its default example (Annual wages: $110,000), it shows employee fica: $8,415. Adjust the inputs to match your situation.
Key takeaways
- Employees pay 7.65% up to the Social Security wage base.
- Employers match; the self-employed pay both halves.
- Some pre-tax benefits also avoid FICA.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.