Glossary term
FICA
Federal Social Security + Medicare tax — 7.65% employee share.
Definition
FICA — the Federal Insurance Contributions Act — is the federal payroll tax that funds Social Security (6.2% on wages up to the annual wage base, $168,600 in 2024 indexed annually) and Medicare (1.45% on all wages, plus an additional 0.9% on wages above $200,000 for high earners). The employee share totals 7.65% on most wages; the employer matches this contribution, making the total FICA burden 15.3%. FICA is withheld every pay period regardless of pay frequency. Self-employed individuals pay both halves through self-employment tax.
Example
On a $3,000 biweekly gross paycheck, $229.50 is withheld for FICA (7.65%).
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Pay frequency — How often paychecks are issued.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions