What does FICA stand for on a pay stub? It stands for the Federal Insurance Contributions Act, the federal law that requires Social Security and Medicare taxes to be taken out of wages. When you see FICA on your paycheck, it is the money withheld for those two programs, and your employer pays a matching share on top.
FICA is separate from federal income tax. Income tax depends on your filing status and the choices on your W-4 form. FICA is a flat percentage of your wages, the same rate for nearly every worker, which is why the line looks so steady from one paycheck to the next.
Quick facts
Stands for
Federal Insurance Contributions ActType
Acronym, usually said FYE-kuhPays for
Social Security and MedicareEmployee rate
7.65% total: 6.2% plus 1.45%Employer share
Matches the employee's 7.65%Self-employed version
SECA tax, both halvesNot to be confused with
FICO, a credit score
What does FICA stand for in payroll?
Payroll staff use FICA as a single label for two taxes created under the same law:
| Part | Worker pays | Employer pays | Limit |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | Only up to a yearly wage cap |
| Medicare (HI) | 1.45% | 1.45% | No cap |
| Total | 7.65% | 7.65% |
The Social Security wage cap rises most years, so earnings above that level are not taxed for Social Security. Medicare tax has no cap, and high earners pay an extra 0.9% Medicare tax on wages above a set threshold. The employer does not match that extra amount.
FICA on your pay stub
Different payroll systems label the same tax in different ways. You may see:
- FICA as one combined line
- OASDI or SS or Soc Sec for the Social Security part
- Med or FICA-Med or HI for the Medicare part
A weekly pay stub: gross pay 800, Fed income tax 54, Soc Sec 49.60, Medicare 11.60. The last two lines are FICA: 6.2% of 800 is 49.60, and 1.45% of 800 is 11.60.
At year end, your W-2 form shows Social Security wages and tax in boxes 3 and 4, and Medicare wages and tax in boxes 5 and 6. Payroll providers such as ADP print these lines the same way on every stub.
The FICA letters, one by one
- F for Federal: a national law, not a state tax.
- I for Insurance: Social Security and Medicare work like social insurance, covering retirement, disability, survivors and health care for older adults.
- C for Contributions: the law frames the tax as paying into the system.
- A for Act: the name of the law in the tax code.
Most people say it as a word, "FYE-kuh," so it counts as an acronym. Some people spell it out, F I C A, and both are understood. The acronym vs abbreviation guide explains why the way you say it changes the label.
FICA for the self-employed
People who work for themselves do not have an employer to pay the matching half. Instead, they pay self-employment tax under a related law, the Self-Employment Contributions Act, often called SECA. The combined rate is 15.3%, covering both the worker and employer shares, on net earnings from self-employment. Half of that tax can be deducted when figuring income tax.
Freelancers often set money aside from each payment and send estimated tax payments to the IRS during the year, since nothing is withheld automatically.
Common FICA questions at tax time
- Do I get FICA back in a refund? Usually not. FICA is not adjusted on your tax return the way income tax is. One exception: if two or more employers together withheld more Social Security tax than the yearly cap, you can claim the extra as a credit.
- Who is exempt? A few narrow groups, such as some students working for their own school and certain visa holders, may be exempt. Most workers are not.
- Does FICA pay for SSI? No. SSI, Supplemental Security Income, is funded from general tax revenue, not from FICA.
FICA vs FICO and other look-alikes
FICA and FICO differ by one letter but are unrelated. FICA is a payroll tax law. FICO is the name behind a widely used credit score. Another mix up is FUTA, the Federal Unemployment Tax Act, which employers pay to fund unemployment benefits; workers do not have it withheld from their pay.
For more money letters you see on forms and pay stubs, browse the business acronyms page.
Questions people ask
What does the FICA line on a paycheck mean?
FICA stands for the Federal Insurance Contributions Act. The FICA line is your share of Social Security and Medicare taxes, usually 7.65% of your wages.
Is FICA the same as Social Security?
Not exactly. FICA includes Social Security tax and Medicare tax. Social Security is the larger of the two parts.
How do you pronounce FICA?
Most people say "FYE-kuh," as one word. Some spell out the letters, and both are fine.
Why does my employer pay FICA too?
The law splits the tax between worker and employer. Your employer pays a matching 7.65% that does not come out of your paycheck.
Do part-time workers pay FICA?
Yes, in most jobs. FICA applies to wages no matter how many hours you work.