FICA
FICA is the payroll tax that funds Social Security and Medicare, split evenly between you and your employer. Your share is 7.65% of wages — 6.2% for Social Security (up to an annual wage cap) and 1.45% for Medicare — and it's withheld from every paycheck separately from income tax.
The employee share is 6.2% for Social Security and 1.45% for Medicare, and your employer pays the same again — so 15.3% of your wage reaches the system even though only half appears on your payslip. The two halves behave differently: Social Security stops at a wage base, $184,500 in 2026, so high earners see their payroll tax drop partway through the year, while Medicare has no ceiling and adds a further 0.9% above $200,000 for single filers and $250,000 for joint. One consequence is worth knowing: FICA is charged on gross wages before deductions, so a traditional 401(k) contribution — which does cut income tax — does not reduce FICA at all. It is the one payroll tax pre-tax contributions cannot touch, and part of why take-home pay is lower than income-tax withholding alone would suggest. The self-employed pay both halves, with half deductible.
Put it to work
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).
Salary to Hourly Calculator
Convert an annual salary to hourly, weekly, biweekly, and monthly pay — adjusted for your real hours and weeks worked.