Payroll-Taxes.com - Federal Payroll and Tax Information

Federal Insurance Contributions Act (FICA)

The taxes imposed under this law fund social security and Medicare. The employer is required to match the 6.2% social security tax rate imposed on the employee's firs t$102,000 (for 2008) of taxable wages as well as the 1.45% Medicare tax rate imposed on all of the employee's taxable wages. No credits or withholding exemptions are permitted for the calculation of FICA taxes. When there is more than one employer, each must withhold FICA tax from the employee up to the taxable wage base. See Form 941 for more detailed information.