What Is The Fica Tax Rate
FICA tax refers to a payroll tax that takes 765 of an employees paycheck in order to fund Social Security 62 and Medicare 145. However these FICA tax rates are the sum of the Social Security tax and the Medicare tax. How To Calculate Fica For 2020 Workest According to the IRS the employers share of the Social Security tax and Medicare is the same as the employee. What is the fica tax rate . Taxes under the Federal Insurance Contributions Act FICA are composed of the old-age survivors and disability insurance taxes also known as social security taxes and the hospital insurance tax also known as Medicare taxes. The self-employed persons FICA tax rate for 2020 January 1 through December 31 2020 is 153 on the first 137700 of net income plus 29 on the net income in excess of 137700. FICA Tax Rate. Different rates apply for these taxes. If its above the wage base then you need to apply the Social Security tax rate to wages up to the wage base and the Medicare tax rate to all com...