By Tony Juraska · Updated October 16, 2026
Quick answer: FICA means the Federal Insurance Contributions Act. A pay stub usually shows its employee taxes as Social Security and Medicare, sometimes using labels such as OASDI or MED. Confirm unfamiliar codes with payroll.
FICA rates and limits for 2026
The employee Social Security rate is 6.2%, applying to covered wages up to the 2026 wage base of $184,500. Regular Medicare is 1.45% of covered wages without a wage-base cap. Employers generally pay matching amounts for these two taxes.
An employer starts withholding an additional 0.9% Medicare tax on wages it pays above $200,000 in a calendar year, regardless of filing status. There is no employer match for this additional tax. The employee’s final tax liability can use a filing-status threshold different from the employer’s withholding trigger. See IRS Topic 751 for the current rules.
A simple paycheck example
If $2,000 is subject to both regular employee taxes and the payment is below the relevant thresholds, Social Security is $124 and Medicare is $29, totaling $153. These amounts do not include federal income-tax withholding, state taxes or other deductions.
The employer’s matching contribution is separate from the employee deduction. Do not subtract the employer share from employee net pay simply because it appears in an informational section of the statement.
Use taxable wages, not just the gross-pay label
Identify the wage base for each tax before checking the percentage. A benefit or deduction can affect tax categories differently. An amount labeled gross pay is not enough to establish every taxable-wage base.
For benefit-related entries, read imputed income on a pay stub. For a detailed calculation review, use the Social Security and Medicare withholding guide.
How to review a FICA line
- Confirm the tax year and whether the amount is current-period or year-to-date.
- Identify whether the line is Social Security, regular Medicare or Additional Medicare.
- Ask payroll which taxable wages were used and whether a threshold affected the payment.
- Compare the result with prior statements and any correction or benefit adjustment.
- Keep the source explanation with the payroll record if a correction is required.
Use the accuracy checklist to review the whole document. A difference from a simple percentage is a reason to investigate the inputs, not to overwrite an employer-issued statement.
Common FICA questions
Is FICA the same as federal income-tax withholding?
No. They are separate payroll tax categories. A zero federal income-tax line does not by itself mean Social Security and Medicare should also be zero.
Why did Social Security stop while Medicare continued?
Ask whether Social Security wages reached the annual limit. Medicare has different rules. Check the taxable-wage totals and tax year before assuming a missing deduction.
Does an employer contribution reduce my take-home pay?
An employer-paid contribution is distinct from an employee deduction. Read the labels and reconcile only the amounts actually deducted from employee pay.
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