Formula:
The FICA (Federal Insurance Contributions Act) tax is comprised of two parts: Social Security and Medicare taxes, which fund crucial federal programs.
- Social Security Tax: For employees, this is 6.2% of your gross earnings, applied only up to an annual wage base limit (e.g., $168,600 for 2024). Earnings above this limit are not subject to Social Security tax.
- Medicare Tax: This is 1.45% of all your gross earnings, with no wage base limit.
- Additional Medicare Tax: High-income earners may owe an extra 0.9% on earnings above certain thresholds ($200,000 for single filers, $250,000 for married filing jointly).
This calculator focuses on the employee's share of FICA taxes. Employers pay a matching portion.
Employee FICA Tax Formula Components:
Social Security Tax = MIN(Gross Annual Income, Social Security Wage Base Limit) × 0.062
Medicare Tax = Gross Annual Income × 0.0145
Additional Medicare Tax = MAX(0, Gross Annual Income - Additional Medicare Tax Threshold) × 0.009
Total FICA Tax = Social Security Tax + Medicare Tax + Additional Medicare Tax