Social Security & Medicare (FICA) – United States

Combined Social Security (6.2%) and Medicare (1.45%) deducted from every paycheck. Shown as 'OASDI' and 'Medicare' on your pay stub.

Funds retirement, disability, and survivor benefits. Applied only to the first $184,500 of wages in 2026. Once you hit this cap, withholding stops for the rest of the year.

Funds hospital insurance for individuals 65 and older. No wage cap - applies to all earned income regardless of amount.

Extra Medicare surtax on wages exceeding $200,000 (single) or $250,000 (married joint). Employee-only - no employer match. Automatically withheld once $200,000 threshold is crossed.

Maximum earnings subject to Social Security tax in 2026. Up from $176,100 in 2025. Maximum employee Social Security tax is $11,439.

Employer matches Social Security (6.2%) and Medicare (1.45%). Paid on top of employee salary - not deducted from paycheck.

Employer matches the employee's 6.2% contribution. Same $184,500 wage base limit applies. Maximum employer contribution: $11,439.

Employer matches employee Medicare tax. No wage cap. Employer does NOT pay the additional 0.9% Medicare surtax - that's employee-only.

Federal Unemployment Tax Act: 6% on first $7,000 of wages per employee. Effectively 0.6% after state unemployment tax credit. Paid entirely by employer.

State unemployment insurance rates vary by state and employer's claims history. Typically 1-5% on first $10,000-$50,000 of wages depending on state. Employer-paid.

Self-employed pay both employer and employee shares: 12.4% Social Security + 2.9% Medicare. Calculated on net self-employment income via Schedule SE.

Applied to the first $184,500 of net self-employment income. Maximum Social Security self-employment tax: $22,878.

2.9% on all self-employment income, plus additional 0.9% on income exceeding $200,000 (single) or $250,000 (joint).

You can deduct the employer-equivalent half (7.65%) of self-employment tax from your adjusted gross income. This reduces your taxable income.

If you work for multiple employers and combined wages exceed $184,500, each employer withholds independently. Excess Social Security tax is refunded when you file your tax return.

W-2 wages reduce the amount of self-employment income subject to Social Security tax. Medicare applies to all earnings from both sources.