FICA withholds money from your paycheck for Social Security and Medicare

FICA withholding is the amount your employer takes from each paycheck and sends to the federal government for Social Security and Medicare. Your employer withholds it automatically — you do not choose the amount, and it comes out before you see your pay. The withholding rate is set by federal law and does not change based on your personal situation.

FICA has two parts. The Social Security portion withholds 6.2 percent of your gross wages, up to a wage cap that changes each year. The Medicare portion withholds 1.45 percent of all your gross wages with no cap. If you earn over a certain threshold (which depends on your filing status), an additional 0.9 percent Medicare withholding applies to the amount above that threshold.

Your employer withholds the same percentages from your pay and sends their matching share to the government as well. You only see the employee portion on your paycheck stub, but both amounts go toward your future Social Security and Medicare benefits.

Key Takeaways

  • FICA withholding removes 7.65 percent of your gross pay for Social Security and Medicare combined, taken automatically by your employer.
  • Social Security withholding stops once you reach the annual wage cap, which was $168,600 in 2024 but changes yearly.
  • Medicare withholding continues on all wages with no upper limit, and an extra 0.9 percent applies to earnings above $200,000 for single filers.
  • Your employer matches the FICA amount you pay, but only your portion appears as a deduction on your paycheck.
  • FICA withholding is mandatory and does not depend on your tax filing status, dependents, or other deductions.

How the Social Security portion works

Social Security withholding takes 6.2 percent of your wages each pay period. This continues throughout the year until your earnings reach the wage base limit. Once you hit that limit in a given year, your employer stops withholding Social Security tax for the rest of that calendar year.

The wage base limit changes annually. In 2024, the limit was $168,600. In 2025, it is $176,100. You can find the current year's limit on the Social Security Administration website or on your employer's payroll system. If you work for multiple employers in the same year, each one withholds Social Security tax independently until you reach the cap across all jobs combined — you would then need to claim the overpayment on your tax return.

How the Medicare portion works

Medicare withholding takes 1.45 percent of your wages with no annual cap. Unlike Social Security, this continues on every dollar you earn, no matter how much you make in a year. This amount funds both hospital insurance (Part A) and is part of the overall Medicare system.

If your income exceeds certain thresholds, an additional Medicare tax of 0.9 percent applies. For single filers, this extra withholding begins when your wages exceed $200,000 in a calendar year. For married couples filing jointly, it begins at $250,000. For married filing separately, it begins at $125,000. Your employer is required to withhold this additional amount once you cross the threshold.

Where FICA withholding appears on your pay stub

Your pay stub shows FICA withholding as separate line items. You will typically see "Social Security" or "OASDI" (Old Age, Survivors, and Disability Insurance) listed with the 6.2 percent amount, and "Medicare" listed with the 1.45 percent amount. If you earn above the threshold for additional Medicare tax, that 0.9 percent will appear as a separate line.

These amounts are deducted from your gross pay before federal income tax withholding is calculated. Your net pay — the amount you actually receive — reflects all FICA withholding plus federal income tax, state income tax (if applicable), and any other deductions you have chosen, such as health insurance or retirement contributions.

FICA withholding versus income tax withholding

FICA and federal income tax withholding are two separate deductions. FICA is a fixed percentage set by law, while federal income tax withholding depends on the W-4 form you complete with your employer. You can adjust your federal income tax withholding by changing your W-4, but you cannot change your FICA withholding rate — it is the same for all employees.

FICA funds Social Security and Medicare specifically. Federal income tax withholding funds general government operations. State and local income taxes, where they exist, are separate again. Understanding which deduction is which helps you see where your money goes and why your take-home pay is lower than your gross pay.

What happens to withheld FICA money

Your employer sends the FICA withholding to the Internal Revenue Service (IRS) on your behalf, along with their matching contribution. The Social Security Administration and Centers for Medicare & Medicaid Services (CMS) receive these funds to pay current beneficiaries and maintain the programs. Your withholding record is tracked under your Social Security number so that it counts toward your future benefits.

You can view your FICA withholding history by creating an account on ssa.gov and checking your Social Security Statement. This statement shows how much you have paid into Social Security and Medicare over your lifetime and estimates your future benefits based on your current earnings record.

Frequently Asked Questions

Can I reduce or stop FICA withholding?

No. FICA withholding is mandatory and set by federal law. You cannot reduce it through your W-4 or any other means. The only exception is if you are a member of certain religious groups that have been granted exemption, which requires a specific IRS form filed with your employer.

What if I work multiple jobs — do I pay FICA on all of them?

Yes, each employer withholds FICA independently. For Social Security, if your combined wages across all jobs exceed the annual wage base limit, you will overpay. You can claim the overpayment as a credit on your tax return. Medicare withholding applies to all wages at all jobs with no limit.

Does FICA withholding count toward my income tax refund?

No. FICA withholding and federal income tax withholding are separate. FICA does not reduce your federal income tax liability or affect your refund. However, if you overpaid Social Security tax due to multiple jobs, you can claim that overpayment on your return.

Why do I see FICA withheld if I am self-employed?

If you are a W-2 employee, your employer withholds FICA. If you are self-employed, you pay self-employment tax instead, which is similar but calculated differently on your tax return. Self-employed individuals pay both the employee and employer portions.