What is FICA?

FICA stands for the Federal Insurance Contributions Act, a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare. In 2026, employees pay 6.2% for Social Security (up to a wage base of $168,600) and 1.45% for Medicare (no cap), for a total FICA rate of 7.65%. Your employer matches this amount, meaning the total FICA contribution is 15.3%.