FICA is calculated as a percentage of your gross pay, split between you and your employer

FICA stands for Federal Insurance Contributions Act. It funds Social Security and Medicare. Your employer takes FICA out of your paycheck automatically — you do not have a choice about whether to pay it. The calculation is straightforward: a fixed percentage of your gross pay (the amount before any deductions) goes to Social Security, and a different fixed percentage goes to Medicare.

For 2024, the Social Security portion is 6.2% of your wages, and the Medicare portion is 1.45% of your wages. Your employer pays an equal amount on top of what they withhold from you. If you are self-employed, you pay both the employee and employer portions yourself, which is why self-employment tax is higher.

The Social Security portion has a wage cap — once you earn a certain amount in a year, no more Social Security tax is taken out. The Medicare portion has no cap, so it continues on all your earnings no matter how much you make. There is also an additional 0.9% Medicare tax on wages above a threshold, which applies to high earners.

Key Takeaways

  • Social Security tax is 6.2% of your gross pay up to an annual wage cap, which changes each year.
  • Medicare tax is 1.45% of all your gross pay with no upper limit, plus an extra 0.9% on earnings above a threshold for higher earners.
  • Your employer withholds these amounts from your paycheck and pays an equal amount themselves.
  • You can see the exact amounts withheld on your pay stub under "Social Security" and "Medicare" or similar labels.

Where to find FICA on your pay stub

Your pay stub breaks down every deduction from your paycheck. Look for a line labeled "Social Security" or "OASDI" (Old-Age, Survivors, and Disability Insurance) — that is the Social Security portion. Look for a line labeled "Medicare" or "Med" — that is the Medicare portion. Both should show the dollar amount withheld.

The pay stub also shows your gross pay at the top. If you multiply your gross pay by 6.2%, you should get roughly the Social Security amount shown (it will be exact unless you have already hit the wage cap for the year). If you multiply your gross pay by 1.45%, you should get roughly the Medicare amount shown.

If you do not see these lines on your pay stub, ask your payroll department or HR. Some employers use different labels, but the withholding must appear somewhere. If nothing labeled Social Security or Medicare appears and you are a W-2 employee, that is a red flag — contact your employer to confirm the withholding is happening.

How the Social Security wage cap works

Social Security tax only applies to earnings up to a certain limit each year. For 2024, that limit is $168,600. Once you earn that much in a calendar year, your employer stops taking Social Security tax out of your paychecks for the rest of the year. Medicare tax, by contrast, continues on every dollar you earn.

This means if you earn $200,000 in a year, you pay Social Security tax on only the first $168,600. The remaining $31,400 is not subject to Social Security tax. Your employer also stops paying their share of Social Security tax on your behalf once you hit the cap.

The wage cap changes each year. The Social Security Administration announces the new cap in October for the following year. If you work for multiple employers in the same year, each one withholds Social Security tax independently up to the cap. You may end up overpaying if your combined earnings from all jobs exceed the cap — you can claim the overpayment as a credit when you file your tax return.

The additional Medicare tax for high earners

In addition to the standard 1.45% Medicare tax, there is an extra 0.9% Medicare tax on wages above a threshold. For 2024, that threshold is $200,000 if you are single, $250,000 if you are married filing jointly, and $125,000 if you are married filing separately. Once your wages exceed your threshold, the extra 0.9% applies to all earnings above that point.

Your employer is required to withhold this additional tax once you cross the threshold. Unlike the regular Medicare tax, this extra 0.9% does not have a matching employer contribution — only you pay it. If you work for multiple employers, each one withholds based on what you report on your W-4, so you may need to adjust your withholding to avoid overpaying or underpaying.

Self-employment FICA calculations

If you are self-employed, you pay both the employee and employer portions of FICA yourself. This is called self-employment tax. The rate is 15.3% total: 12.4% for Social Security (which is 6.2% × 2) and 2.9% for Medicare (which is 1.45% × 2), plus the additional 0.9% Medicare tax if your income is high enough.

You calculate self-employment tax on your net self-employment income, not your gross revenue. Net income is what you earn after subtracting business expenses. You report this on Schedule SE (Form 1040), which calculates the exact amount you owe. You then deduct half of your self-employment tax as an adjustment to income on your tax return, which reduces your taxable income slightly.

Self-employed people pay self-employment tax when they file their tax return, usually in April. Some people make quarterly estimated tax payments throughout the year to avoid a large bill at tax time. The IRS provides Form 1040-ES to help you calculate what to pay each quarter.

Why FICA amounts vary from paycheck to paycheck

If your FICA withholding looks different on different paychecks, there are usually a few reasons. If you get paid biweekly but one month has three paychecks instead of two, that third paycheck will have higher FICA withholding because your gross pay is higher. Bonuses, overtime, and commissions also increase your gross pay for that period, which increases FICA withholding.

If you hit the Social Security wage cap partway through the year, your Social Security withholding will drop to zero on paychecks after you reach the cap, while Medicare withholding continues. This is normal and correct. If you cross the additional Medicare tax threshold, you will see the extra 0.9% appear on paychecks after that point.

Changes to your W-4 also affect FICA withholding indirectly. If you claim more dependents or adjust your withholding, your federal income tax withholding changes, but FICA withholding is always the same percentage of gross pay (unless you have hit a cap). If your withholding looks wrong, check your pay stub to confirm the gross pay amount is correct.

Frequently Asked Questions

Can I opt out of paying FICA?

No. FICA is mandatory for all W-2 employees and self-employed people. The only exceptions are certain religious groups and nonresident aliens in specific visa categories. If you are a U.S. citizen or permanent resident working in the United States, FICA withholding is required by law.

What happens if my employer does not withhold FICA?

Report it to your employer when ready. FICA withholding is a legal requirement. If your employer refuses to withhold or you suspect they are not withholding correctly, contact the IRS at 1-800-829-1040 or file Form SS-8 if you believe you have been misclassified as an independent contractor when you should be a W-2 employee.

Do I get FICA back when I file my taxes?

No. FICA is not a tax that gets refunded. The money you pay goes directly to Social Security and Medicare trust funds. If you overpaid Social Security tax because you worked for multiple employers, you can claim the overpayment as a credit on your tax return, but you do not get Medicare or regular income tax refunded as FICA.

How do I know if I have paid enough FICA for the year?

Your pay stub shows cumulative FICA withholding year-to-date. At the end of the year, your W-2 form shows total Social Security and Medicare tax withheld. Compare this to what you should have paid based on your total wages and the rates for that year. If you worked for multiple employers, add up the Social Security tax from all W-2s to check for overpayment.

Does FICA withholding change if I get a raise?

Yes. FICA is a percentage of your gross pay, so a raise increases your gross pay and therefore increases your FICA withholding. The percentage stays the same (6.2% for Social Security, 1.45% for Medicare), but the dollar amount goes up. This is separate from any changes to your federal income tax withholding.