FICA

Definition

FICA imposes a 6.2 percent Social Security tax on wages up to the wage base plus 1.45 percent Medicare tax with no wage cap. Employers withhold and match employee FICA. Self-employed individuals pay both halves as SECA on Schedule SE.

Examples

• A W-2 employee earning $100,000 has $7,650 withheld for FICA, with the employer matching.