FICA is the umbrella term for two federal payroll taxes: Social Security (Old-Age, Survivors, and Disability Insurance) at 6.2%, and Medicare (Hospital Insurance) at 1.45%. Combined: 7.65% withheld from every W-2 employee's paycheck, and matched by the employer for a total 15.3% going to these programs per dollar of wage.
Key thresholds for 2026:
- Social Security wage base: $176,100. Wages above this aren't subject to the 6.2% SS portion.
- Medicare: No cap. Every dollar of wage and SE income pays the 1.45%.
- Additional Medicare Tax: 0.9% on combined wages + SE income above $200K single / $250K MFJ. Employer withholds the employee half; self-employed pay it on Schedule SE.
For tipped workers, FICA is owed on reported tips at the same rate as regular wages. If your direct wage (the $2.13/hr federal tipped minimum, or your state's tipped wage) isn't enough to cover the FICA owed on your reported tips, the employer reports the shortfall in Box 12 code A of your W-2 — and you pay it on your 1040.
Self-employed workers pay both halves themselves as self-employment tax — 15.3% on adjusted SE income.