FICA is withheld from all wages, up to the maximum taxable earnings cap of $168,600 for 2024. This cap increases each year with inflation. FICA is comprised of Social Security (6.2%) and Medicare (1.45%), for a total of 7.65%. The employer pays the same matching amounts that the employee never sees.
FICA is withheld from all wages, independent of whether you are drawing Social Security. Depending on your earnings history, these earnings may increase your Social Security benefit.
Comments