FICA Wage Base Up in 2015, Tax Rates Unchanged: Employment Law Manual, Quick Reference Chart Updated

Author: Rena Pirsos, XpertHR Legal Editor

Federal Insurance Contributions Act (FICA) tax is composed of Social Security tax and Medicare tax. Employers withhold Social Security taxes from employees' pay up to a taxable wage limit that is adjusted annually for inflation, and make matching contributions. This limit is increasing for 2015. There is no limit on the Medicare portion of FICA. The FICA tax rates will not change for 2015.

The Withholding Taxes section of the Employment Law Manual and the Quick Reference chart showing the Social Security and Medicare Tax Rates and Benefit Amounts have been updated accordingly.