Glossary

FICA

Social Security and Medicare taxes, withheld from wages and matched by the employer.

FICA is the pair of payroll taxes funding Social Security and Medicare. Employees pay 6.2% for Social Security on wages up to an annual wage base, and 1.45% for Medicare with no ceiling; employers match both. Wages above $200,000 in a calendar year carry an extra 0.9% Additional Medicare Tax, withheld by the employer regardless of filing status. Self-employed people pay both halves together as self-employment tax, calculated on Schedule SE.

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