FICA on a pay stub is the Social Security and Medicare tax your employer withholds under the Federal Insurance Contributions Act. For most workers, it adds up to 7.65% of gross wages each pay period: 6.2% for Social Security and 1.45% for Medicare. Your employer pays a matching 7.65% out of its own funds, and the combined money flows to the federal programs that pay retirement, disability, survivor, and hospital insurance benefits.
How the FICA Line Is Labeled
Not every payroll system prints the word “FICA.” Some do; many break the tax into its two components and use codes instead. If you’re scanning your stub for the deduction, look for any of these:
- OASDI or Fed OASDI/EE — the Social Security portion (Old-Age, Survivors, and Disability Insurance). The “/EE” flags it as the employee share.
- SS or Social Security — another common label for the same withholding.
- Medicare, MED, or Fed MED/EE — the Medicare hospital insurance portion.
If your stub shows two separate lines, add them together to get your total FICA for the period. If it shows one combined “FICA” line, that single number already includes both.
What the Two Taxes Pay For
Social Security, formally Old-Age, Survivors, and Disability Insurance, pays monthly benefits to retirees, workers who become disabled, and the families of workers who die. Medicare provides hospital insurance mainly to people age 65 and older, along with younger people who have certain disabilities or end-stage renal disease.1HHS.gov. Who’s Eligible for Medicare? Both programs run on current payroll tax revenue paying current beneficiaries.
The 2026 Rates and Wage Cap
Your FICA withholding is a fixed percentage of your gross wages, but the two components follow different rules:
- Social Security (OASDI): 6.2% of wages up to an annual cap. For 2026, that cap — the contribution and benefit base — is $184,500. Once your year-to-date wages hit that amount, Social Security withholding stops for the rest of the calendar year. The most an employee can pay in Social Security tax in 2026 is $11,439.2Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax3Social Security Administration. Contribution and Benefit Base
- Medicare (HI): 1.45% of all wages, with no cap. Every dollar you earn is subject to it.2Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax
- Additional Medicare Tax: an extra 0.9% on wages above $200,000 for single filers, $250,000 for married couples filing jointly, or $125,000 for married filing separately. Your employer starts withholding it once your wages pass $200,000 in a calendar year, regardless of your filing status. There is no employer match on this surcharge.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax
For a worker earning below the Social Security cap, the combined employee rate is 7.65%. A $60,000 salary produces roughly $4,590 in FICA withholding across the year.
Why Some Pre-Tax Deductions Shrink FICA and Others Don’t
The rules here catch people off guard. Health insurance premiums and flexible spending account contributions paid through a Section 125 cafeteria plan generally come out before FICA is calculated, so they lower your withholding.5Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans
Retirement contributions do not. Money you defer into a 401(k) or 403(b), whether traditional pre-tax or Roth, is still subject to Social Security and Medicare withholding.6Internal Revenue Service. Retirement Plan FAQs Regarding Contributions That mismatch is why your FICA-taxable wages on your W-2 (Boxes 3 and 5) can be higher than the federal taxable wages in Box 1.
The Employer’s Matching Share
You and your employer split the base FICA cost evenly. For every dollar withheld from your paycheck for Social Security and Medicare, your employer pays an identical dollar from its own funds — 6.2% and 1.45%, respectively.7Office of the Law Revision Counsel. 26 USC 3111 – Rate of Tax The combined employer-employee rate on wages below the Social Security cap is 15.3%. The one item outside this split is the 0.9% Additional Medicare Tax, which the employee pays alone.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax
If You’re Self-Employed
Self-employed workers don’t see a FICA line, because no employer is withholding it. The equivalent obligation is self-employment tax, and because there’s no employer to split the bill, you pay both halves: 12.4% for Social Security and 2.9% for Medicare, for a combined 15.3%.8Office of the Law Revision Counsel. 26 USC 1401 – Rate of Tax The same $184,500 Social Security cap and the 0.9% Additional Medicare Tax apply. You can deduct one-half of your self-employment tax when figuring adjusted gross income, whether or not you itemize.9Office of the Law Revision Counsel. 26 USC 164 – Taxes The tax is reported on Schedule SE with your Form 1040.
What FICA Is Buying You
The withholding isn’t only a tax. It’s how you earn eligibility for future Social Security and Medicare benefits. In 2026, one Social Security credit is earned for every $1,890 in covered earnings, up to four credits per year.10Social Security Administration. Quarter of Coverage Earn at least $7,560 in 2026 and you’ve locked in the maximum four credits for the year.
Most workers need 40 lifetime credits, or about ten years of covered work, to qualify for retirement benefits. Fewer are needed for disability benefits or for a family to receive survivor benefits. The dollar amount per credit rises each year with the national average wage.
If Too Much FICA Was Withheld
Working two jobs is the common trigger. Each employer withholds Social Security tax on its own, without knowing what the other has taken. If your combined wages cross the $184,500 cap in 2026, you’ll have paid more Social Security tax than the law requires. You claim the excess as a credit on your Form 1040; the instructions include a worksheet.11Internal Revenue Service. Topic No. 608, Excess Social Security and RRTA Tax Withheld
If a single employer over-withheld because of a payroll mistake, the fix runs through the employer first. Ask them to correct it and refund the difference. If they won’t, file Form 843 with the IRS to request the refund directly.12Internal Revenue Service. Instructions for Form 843 Medicare tax has no cap, so basic 1.45% overpayments are rare, but the same process applies.
Who Doesn’t See FICA on a Stub at All
Federal law exempts a handful of narrow categories from FICA withholding. If you fall into one, no deduction will appear:
- Students working for the college or university where they are enrolled and attending classes, provided the job is incidental to their studies.13Internal Revenue Service. Student Exception to FICA Tax
- Members of qualifying religious groups that have existed continuously since December 31, 1950, and oppose accepting insurance benefits. Approval requires Form 4029 and waives all future benefits from these programs.14Internal Revenue Service. Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits
- Nonresident alien students and scholars on F-1, J-1, or M-1 visas, generally during their first five calendar years in the U.S. The exemption ends when the person becomes a resident alien.15Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes
- Employees of a foreign government, including diplomatic and consular staff, regardless of citizenship or residence.16eCFR. 26 CFR 31.3121(b)(11)-1 – Services in the Employ of a Foreign Government
- Certain state and local government employees whose positions are excluded under a Section 218 agreement with the Social Security Administration or who participate in a qualifying public retirement system instead.17Internal Revenue Service. State and Local Government Employees Social Security and Medicare Coverage
Each exemption is narrow and needs specific documentation. If you think one applies to you, confirm it with your employer’s payroll department before assuming the missing FICA line is correct.