FICA (Federal Insurance Contributions Act)
paycheckAlso known as: FICA, payroll tax, Social Security tax
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
FICA appears on every W-2 paycheck as two separate withholdings: "Social Security" (6.2% capped at the annual wage base, $184,500 in 2026) and "Medicare" (1.45% with no cap). High earners pay an additional 0.9% Medicare surtax on wages over $200,000 single / $250,000 married — known as the Additional Medicare Tax (employer does NOT match this). Self-employed individuals pay both halves (15.3% total) via Self-Employment Tax on Schedule SE, but get to deduct half on Schedule 1 line 15. FICA is separate from federal income tax and is not reduced by the standard deduction or itemized deductions.
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