FICA (Federal Insurance Contributions Act) is a U.S. payroll tax that funds Social Security and Medicare, with contributions split between employees and employers.
- What is FICA?
Answer: It is a payroll tax funding Social Security and Medicare. - What are the FICA tax rates in 2025?
Answer: As of July 11, 2025, it is 6.2% for Social Security and 1.45% for Medicare per party. - Who pays FICA taxes?
Answer: Both employees and employers pay, with a total of 15.3% on wages. - What is the Social Security wage base limit?
Answer: The 2025 limit is approximately $168,600 (subject to annual adjustment). - How is FICA reported?
Answer: It is reported on W-2 forms and payroll records.
