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Calculation of FICA Withholding - Worked Example

Author: Ryan F. Donovan

Updating Author: Alice Gilman

Unless specifically exempt, employees and employers are subject to Social Security and Medicare (FICA) taxes on any taxable wages. The 2019 Social Security tax rate is 6.2% up to the first $132,900 in taxable wages. The 2019 Medicare tax rate is 1.45% and there is no taxable wage limit. An additional 0.9% in Medicare taxes applies to wages in excess of $200,000; there is no employer match.