FICA Tax Rate: What Are Employer Responsibilities?
This article has been reviewed by tax expert Erica Gellerman, CPA.
FICA (Federal Insurance Contributions Act) taxes are social security and Medicare taxes that both employers and employees pay. Employers must withhold FICA taxes from employees’ wages, pay employer FICA taxes and report both the employee and employer shares to the IRS. For the 2019 tax year, FICA tax rates are 12.4% for social security, 2.9% for Medicare and a 0.9% Medicare surtax on highly paid employees. The rates remained the same for the 2020 tax year.
Businesses with employees have a number of responsibilities when it comes to small-business
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