What is FICA and How To Calculate FICA Tax 2023 With Complete Guide?

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Last updated 26 março 2025
What is FICA and How To Calculate FICA Tax 2023 With Complete Guide?
In addition to funding Social Security benefits and Medicare health insurance, the FICA tax (Federal Insurance Contribution Act) is a payroll tax that is split between employees and employers. In addition to 7.65% (6.2% for Social Security and 1.45% for Medicare), they both contribute 15.3% to FICA, which is a combined contribution of 15.3%. Employees can earn up to $137,700 in 2020. Medicare does not have a wage limit.
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