1. What is FICA Tax?

FICA (Federal Insurance Contributions Act) tax is a U.S. payroll tax that funds Social Security and Medicare programs. It's automatically deducted from employees' paychecks and matched by employers.

2. How Is FICA Tax Calculated?

The calculator uses the following formula:

Where:

• \( Wages \) — Employee's gross wages
• \( 0.062 \) — Social Security tax rate (6.2%)
• \( 0.0145 \) — Medicare tax rate (1.45%)

Note: There's an additional 0.9% Medicare surtax on wages above $200,000 for single filers ($250,000 for joint filers) not included in this calculator.

3. Importance of FICA Tax

Details: FICA taxes fund vital social programs - Social Security provides retirement, disability, and survivor benefits, while Medicare provides health insurance for seniors and certain disabled individuals.

4. Using the Calculator

Tips: Enter your gross wages (before any deductions) in USD. The calculator will show the breakdown of Social Security and Medicare taxes.

5. Frequently Asked Questions (FAQ)

Q1: Is there a wage base limit for FICA taxes?
A: Yes, Social Security tax only applies to the first $147,000 (2022) of wages. Medicare tax applies to all wages with no limit.

Q2: Do self-employed people pay FICA tax?
A: Yes, as self-employment tax which covers both employee and employer portions (total 15.3%).

Q3: Are tips subject to FICA tax?
A: Yes, reported tips are considered wages for FICA tax purposes.

Q4: Can I get a refund of FICA taxes?
A: Generally no, except in cases of over-withholding or if you're exempt (certain nonresident aliens, etc.).

Q5: How often is FICA tax paid?
A: Employers typically deposit FICA taxes monthly or semi-weekly, depending on their payroll size.