Federal Insurance Contributions Act
Umbrella term covering both Social Security (6.2%) and Medicare (1.45%) taxes. Combined that's 7.65% of your gross pay.
Who pays it
Every W-2 employee pays FICA. Self-employed people pay the equivalent (SECA) at double the rate since they cover both halves.
How much
7.65% total — 6.2% Social Security + 1.45% Medicare. Your employer matches it dollar-for-dollar (which is why it costs an employer ~7.65% more than your salary to hire you).
Where it appears on your W-2
FICA isn't a single W-2 box — Social Security shows in Box 4, Medicare in Box 6.
Tax impact
FICA is not deductible on your federal return. Unlike federal income tax, FICA applies to your gross wages before 401(k) reduces them — that's why your Box 3 (Social Security wages) is often higher than Box 1 (federal taxable wages).
Common questions about FICA
Why is my FICA higher than my federal tax?
FICA hits gross wages without exemptions. Federal income tax has standard deduction, 401(k), and HSA reductions stripped out first.
Do I get FICA back at tax time?
No. Unlike federal withholding, you don't reconcile FICA on your return. You're getting 'credit' toward future Social Security and Medicare benefits instead.
Filing your taxes?
If understanding FICA is part of getting your return right, these tools handle the math for you.
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