What is FICA on a paystub?
FICA stands for the Federal Insurance Contributions Act — the federal law that funds Social Security and Medicare. On a paystub, FICA usually refers to the Social Security portion (6.2%) and Medicare portion (1.45%) withheld from your paycheck.
Full explanation
FICA is the umbrella term for two separate payroll taxes: Social Security (Old-Age, Survivors, and Disability Insurance, or OASDI) and Medicare. The employee pays 6.2% of wages for Social Security (up to the annual wage base limit) and 1.45% for Medicare, both withheld from each paycheck. The employer pays a matching 6.2% + 1.45% on top — that match doesn't appear on the employee's paystub but is a real cost to the business.
Some paystubs list FICA as a single combined line; others break it out as "Social Security" or "OASDI" plus "Medicare" separately. Both formats reflect the same underlying withholding — just different presentation choices made by the payroll system.
Social Security has an annual wage base limit ($168,600 for 2024, adjusted annually). Once you hit that, no further Social Security withholding applies for the year, though your Medicare withholding continues on every dollar earned. High earners may also see an Additional Medicare Tax of 0.9% on wages over $200,000.
Self-employed workers pay both the employee and employer shares — 12.4% Social Security + 2.9% Medicare = 15.3% total, calculated on their Schedule SE and called "self-employment tax." That's why W-2 vs 1099 classification matters so much: the employer-side FICA either gets paid by the business (W-2) or absorbed entirely by the worker (1099).
Frequently asked questions about FICA on a paystub
Is FICA the same as Social Security?
Social Security is one half of FICA. FICA covers both Social Security (6.2% employee share) and Medicare (1.45% employee share). Some paystubs list them combined as "FICA"; others break them out separately.
Why is FICA on every paystub?
Federal law requires employers to withhold the employee share of Social Security + Medicare from every paycheck and remit it (along with the matching employer share) to the IRS. The withholding funds Social Security retirement / disability benefits and Medicare hospital insurance.
Do contractors pay FICA?
Independent contractors don't have FICA withheld from invoice payments, but they owe the equivalent through self-employment tax on their annual tax return — 15.3% total, covering both the employee and employer shares of Social Security and Medicare on net self-employment earnings.