Fica — Payroll Definition

What is FICA?

FICA is the Federal Insurance Contributions Act. For most employees in 2026, Social Security withholding is 6.2% of covered wages up to the $184,500 contribution and benefit base, while Medicare withholding is generally 1.45% with no wage cap. Employers generally pay matching base amounts. Separate Additional Medicare Tax rules can affect the employee above applicable thresholds.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

Browse all payroll definitions or use the pay-statement codes guide.