Browse federal, state and local payroll tax codes.
FICA is the Federal Insurance Contributions Act. On ordinary covered employee wages it combines Social Security and Medicare, though a statement may display them separately. Federal income-tax withholding is a different charge.
How to read this entry
Use the meaning Social Security and Medicare payroll taxes alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
For $2,000 of wages fully subject to both ordinary taxes, Social Security at 6.2% is $124 and Medicare at 1.45% is $29, totalling $153. This example assumes the Social Security wage cap and additional Medicare threshold have not been reached.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Do not subtract a combined FICA total again if its two components are already included in the tax subtotal. Check the separate wage bases and annual limits.
Compare related entries
Read the federal, state and local payroll tax codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on federal, state and local payroll tax codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.