What is FICA Tax Calculator?
The FICA Tax Calculator helps both employees and employers calculate their Federal Insurance Contributions Act (FICA) taxes. This tax includes two components: Social Security tax (6.2% up to the annual wage limit) and Medicare tax (1.45% with no wage limit). For high earners, an additional 0.9% Medicare surtax applies to wages exceeding $200,000. The calculator simplifies determining these amounts based on income, ensuring accurate payroll deductions.
Formula for FICA Tax Calculation
Total FICA Tax = (Social Security Tax) + (Medicare Tax) + (Additional Medicare Tax, if applicable)
- Social Security Tax = 6.2% of income (up to $147,000 in 2024)
- Medicare Tax = 1.45% of total income
- Additional Medicare Tax = 0.9% of income over $200,000
How to Use the FICA Tax Calculator?
Enter your annual income and click on the "Calculate" button to determine your FICA taxes. The calculator computes Social Security, Medicare, and any additional Medicare taxes. For accurate results, provide your exact annual income. Use the "Clear" button to reset inputs for a new calculation.
FAQs About FICA Tax Calculator
1. What is FICA tax?
FICA tax is a federal payroll tax comprising Social Security and Medicare taxes. It funds retirement, disability, and healthcare benefits for eligible individuals.
2. How is Social Security tax calculated?
Social Security tax is calculated as 6.2% of an employee's wages, up to the annual wage limit of $147,000 (as of 2024).
3. What is the Medicare tax rate?
The Medicare tax rate is 1.45% of an employee's total income, with no wage limit.
4. Who pays FICA taxes?
Both employees and employers pay FICA taxes. Employers match the employee's contributions to Social Security and Medicare.
5. What is the additional Medicare tax?
The additional Medicare tax is 0.9% of wages exceeding $200,000 for single filers and $250,000 for joint filers.
6. Can FICA taxes be refunded?
No, FICA taxes are not refundable as they fund mandatory programs like Social Security and Medicare.
7. Is FICA tax the same for everyone?
The Social Security tax has a wage limit, but Medicare taxes apply to all wages. High earners may pay an additional Medicare tax.
8. How does FICA affect self-employed individuals?
Self-employed individuals pay both the employee and employer portions of FICA taxes, known as the self-employment tax.
9. Are FICA contributions tax-deductible?
For self-employed individuals, the employer portion of FICA taxes is tax-deductible.
10. How often are FICA taxes withheld?
FICA taxes are withheld from every paycheck, based on the employee's income for the pay period.