What Is FICA Tax? 2025 Rates and How It’s Calculated - Paycom FICA is a U S federal payroll tax that is automatically deducted from an employee’s paycheck But exactly how much is FICA tax? That depends on if you’re an employee or employer FICA combines Social Security and Medicare taxes for a total rate of 15 3%, but the cost is split between each party
FICA Tax: Rates, How It Works in 2025 - NerdWallet FICA is a payroll tax, and it's short for the Federal Insurance Contributions Act The law requires employers to withhold a certain percentage of an employee’s wages to help fund Social Security
Publication 15 (2025), (Circular E), Employers Tax Guide Social security and Medicare taxes for 2025 The rate of social security tax on taxable wages is 6 2% each for the employer and employee The social security wage base limit is $176,100 The Medicare tax rate is 1 45% each for the employee and employer, unchanged from 2024
What Is FICA Tax? How To Calculate It in 2025 | Paychex Compare each employee's year-to-date earnings against the annual Social Security wage base ($176,100 for 2025) Then, determine which FICA calculator applies: If an employee's earnings are below the wage base, apply the full 7 65% FICA rate
FICA tax: How it works and current rates - H R Block FICA tax rate If you’re wondering, “What is the FICA tax amount?”, FICA taxes are equal to 15 3% of your earnings How much is FICA tax this year? If you work as a W-2 employee, you’ll pay half of the 15 3% and your employer pays the other half That said, for employees, the FICA tax rate for 2024 and 2025 is 7 65%, which combines 6 2
FICA Tax Rates 2025: What They Are and How They Work? How much is FICA in 2025? FICA taxes a total of 15 3% of eligible wages, split equally between employees and employers at 7 65% each The maximum Social Security tax per person is $10,918 20 in 2025
Payroll Tax Rates: Everything You Need To Know - Forbes Federal payroll tax rates for 2025 are: When your business files a tax return each year, you’ll include a form showing you paid state unemployment taxes, and that can qualify you for a tax credit