FICA Tax Rate 2020

The FICA tax (Federal Insurance Contributions Act) is a combination of Medicare payroll tax and Social Security. FICA tax rates are set in statute, and the only way to change them is through a new tax law.

Social security contributions are 12.4% of taxable wages, half of which is paid by employers, the other half is paid by employees. The self-employed will pay the whole 12.4%. This is paid on earnings up to the maximum taxable income cap.

Medicate payroll tax is 2.9%, again split half and half between employers and employees. The self-employed have to pay the entire 2.9%. This is paid on all earnings.

Therefore the total FICA rate is:

• 65% for employees
• 65% for employers
• 3% for the self-employed.