What Does FICA Stand For?
FICA = Federal Insurance Contributions Act. Enacted in 1935 alongside Social Security, FICA is the law that requires you and your employer to contribute to two federal programs:
- Social Security (OASDI) — Old-Age, Survivors, and Disability Insurance
- Medicare (HI) — Hospital Insurance
Unlike federal income tax (which varies based on your W-4 elections), FICA is a flat percentage with no exemptions for most workers.
2024 FICA Tax Rates
| Tax | Employee Rate | Employer Rate | Total | 2024 Wage Cap |
|---|---|---|---|---|
| Social Security | 6.2% | 6.2% | 12.4% | $168,600 |
| Medicare | 1.45% | 1.45% | 2.9% | No cap |
| Additional Medicare* | 0.9% | 0% | 0.9% | Over $200,000 |
| Total FICA | 7.65% | 7.65% | 15.3% | — |
*The Additional Medicare Tax of 0.9% applies to wages over $200,000 (single) or $250,000 (married filing jointly).
How to Calculate Your FICA Tax
Gross pay per paycheck: $2,000
Social Security: $2,000 × 6.2% = $124.00
Medicare: $2,000 × 1.45% = $29.00
Total FICA withheld: $153.00 per paycheck
The Social Security Wage Cap
Social Security tax only applies to the first $168,600 of earnings in 2024. Once you've earned that amount, the 6.2% Social Security withholding stops for the rest of the year. Medicare has no wage cap.
The Social Security wage base typically rises each year with inflation. It was $160,200 in 2023 and $168,600 in 2024.
FICA for Self-Employed Workers
If you're self-employed, you pay both halves of FICA — called the Self-Employment Tax — at a rate of 15.3% on net self-employment income. However, you can deduct half of the self-employment tax on your federal income tax return.
Who Is Exempt from FICA?
- Non-resident alien students on F-1, J-1, M-1, or Q visas (for certain employment)
- Some state and local government employees covered by alternative pension plans
- Religious order members who have taken a vow of poverty
- Student employees of a school they attend (in some cases)
FICA FAQ
Does FICA affect my Social Security benefits?
Yes! The Social Security portion of FICA goes directly to your Social Security account. Your future retirement and disability benefits are calculated based on your lifetime FICA-taxed earnings history.
Can I opt out of FICA?
No. FICA is mandatory for virtually all employees in the United States.
Why does my pay stub show “OASDI” instead of FICA?
OASDI stands for Old-Age, Survivors, and Disability Insurance — this is just another name for the Social Security portion of FICA. Some pay stubs show it as “OASDI,” others as “Soc Sec,” “SS Tax,” or “FICA SS.” They all refer to the same 6.2% deduction.