Federal Insurance Contributions Act (FICA)
Reference Number: NFC-24-1704912186
Published: January 12, 2024
Effective: Pay Period 26, 2023
Summary
The Federal Insurance Contributions Act (FICA) maximum amount paid by employees applies to payments received on or after January 1, 2024, and is described below.
FICA Employee
The current Federal Social Security (Old-Age, Survivors, and Disability Insurance (OASDI)) and Medicare amounts are calculated by multiplying the current FICA-taxable wages by the appropriate FICA rate.
The FICA rate remains 7.65 percent. Of the 7.65 percent, the 6.20 percent Social Security portion has a maximum annual earnings of $168,600 with a maximum Social Security Tax paid by the employee of $10,453.20. The FICA Medicare rate remains 1.45 percent on wages up to $200,000. The FICA Medicare rate remains 2.35 percent for the portion of wages over $200,000.
Medicare-Only Employee
The Medicare rate remains 1.45 percent plus an additional 0.9 percent on wages over $200,000. There is no taxable wage limit. The Medicare rate of 0.9 percent is the additional tax on the portion of wages over $200,000.
Inquiries
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