1. What is FICA Tax?

FICA (Federal Insurance Contributions Act) tax is a U.S. payroll tax that funds Social Security and Medicare. It's deducted from employees' paychecks and matched by employers.

2. How Does the Calculator Work?

The calculator uses the FICA tax formula:

Where:

• \( Income \) — Gross income in dollars
• \( FICA\_Rate \) — Combined Social Security and Medicare tax rate (typically 7.65% for 2025)

Explanation: The calculation multiplies your gross income by the current FICA tax rate to determine your FICA tax contribution.

3. Importance of FICA Tax Calculation

Details: Understanding FICA tax helps with financial planning, budgeting, and ensuring proper tax withholding. It's a mandatory contribution that affects take-home pay.

4. Using the Calculator

Tips: Enter your gross income in dollars and the FICA tax rate (default is 0.0765 for 7.65%). The calculator will compute your FICA tax obligation.

5. Frequently Asked Questions (FAQ)

Q1: What's the standard FICA rate for 2025?
A: The standard rate is 7.65% (6.2% for Social Security + 1.45% for Medicare), though high earners may have additional Medicare tax.

Q2: Is there an income cap for FICA taxes?
A: Social Security tax applies only up to the wage base limit ($168,600 in 2024, adjusted annually). Medicare tax applies to all wages.

Q3: Do self-employed people pay FICA tax?
A: Yes, as self-employment tax which covers both employer and employee portions (15.3% total).

Q4: Can I get my FICA taxes back?
A: Generally no, except in rare circumstances like over-withholding or if you're exempt from Social Security.

Q5: How does FICA differ from federal income tax?
A: FICA is specifically for Social Security/Medicare, while federal income tax funds general government operations.