FICA
Business & Finance abbreviation · Tax
| Stands for | Federal Insurance Contributions Act tax |
|---|---|
| Categories | Business & Finance |
FICA stands for Federal Insurance Contributions Act tax, a tax abbreviation.
US payroll tax funding Social Security and Medicare, withheld from employees' wages and matched by employers: 6.2% each for Social Security up to an annual wage base and 1.45% each for Medicare on all wages. Higher earners also pay an extra 0.9% Medicare tax.
Example: Between FICA and federal withholding, almost a quarter of my paycheck disappears.
Usage notes
The name refers to the Federal Insurance Contributions Act, the 1939 codification of the payroll tax first imposed under the Social Security Act of 1935. The 0.9% Additional Medicare Tax, in place since 2013, applies to wages above $200,000 for single filers and is not matched by the employer. Self-employed people pay the equivalent under SECA. Pronounced "FY-kuh."
Related abbreviations
More tax abbreviations
- EIN – Employer Identification Number
- EITC – Earned Income Tax Credit
- ETR – Effective tax rate
- FATCA – Foreign Account Tax Compliance Act
- FBAR – Report of Foreign Bank and Financial Accounts (FinCEN Form 114)
- FEIE – Foreign earned income exclusion
- FIT – Federal income tax
- FTC – Foreign tax credit
- FUTA – Federal Unemployment Tax Act tax
- GST – Goods and services tax
- GSTIN – Goods and Services Tax Identification Number
- HOH – Head of household