Answer:
FICA consists of both social security and medicare. The rate charged is 15.3% of your gross earnings. Half of that is paid by your employer, and the other half is paid by you and withheld from your paycheck.
So, the FICA that is withheld on your paycheck should be 7.65% of your gross earnings.
== ans ==
As of the new law passed in Dec 2010:
The tax is payable on the first $106,800 of earnings. Earning are defined slightly differently for this than what is used for withholding, (or other things). Additionally, a portion of what was a total of 15.3% tax equally paid between employer & employee - or entirely by self employed (half employer paid, half employee), is dedicated to Medicare and has no maximum earnings limit.
HOWEVER:
Under current law, employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay 12.4% Social Security self-employment taxes on all their self-employment income up to the same threshold.
For 2011, the Senate passed 2010 Tax Reform Act gives a two-percentage-point payroll/self-employment tax holiday for employees and self-employeds. As a result, employees will pay only 4.2% Social Security tax on wages and self-employment individuals will pay only 10.4% Social Security self-employment taxes on self-employment income up to the threshold.
The maximum savings for 2011 will be $2,136 (2% of $106,800).
The amount paid by the employer will not change and will be that same 2% more than the employee.