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Definition

FICA

Federal payroll tax that funds Social Security and Medicare. Employees pay 7.65% of wages; employers match it.

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

FICA is Federal payroll tax that funds Social Security and Medicare. Employees pay 7.65% of wages; employers match it. Used in tax.

What Is FICA?

The Federal Insurance Contributions Act (FICA) is a U.S. payroll tax split between Social Security (6.2% on wages up to the annual cap) and Medicare (1.45% on all wages, plus a 0.9% Additional Medicare Tax on high earners). Employers match the employee share dollar-for-dollar; self-employed workers pay both halves via SECA.

Related Terms

OASDI (Social Security Tax)
The Social Security portion of FICA — 6.2% on wages up to an annual cap, matched by your employer.
Social Security
A U.S. government program providing retirement, disability, and survivor benefits.

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