What part of FICA does the employer pay?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Your employer is forced to pay 7.5% of your wages to Social Security (FICA). This is in addition to the 7.5% FICA deduction you see on your check stub.

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.


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.
110 people found this useful

What does fica pay for?

The (OASDI) Old Age Survivor and Disability Insurance (FICA) (social security and Medicare taxes) all mean the same tax. Possible future social security benefits and some medi

What if your employer did not take out FICA tax?

Some paystubs have Medicare and Social Security taxes listed separately while others have them combined and listed as FICA Taxes. Check your paystub to be sure your employer i

Does an independent contractor pays selfl-employment taxes instead of FICA taxes?

That is correct, exept that the employer pays a portion of your FICA, whereas when you are Self-employed you are hit with the full amount. Of course you have the advantages of

Can an employer force you to pay fica?

An employer is required by law to subtract FICA from your paycheck (or pay it himself and add the amount as additional income on your W-2) as well as pay his own share. Your e

What is the percentage amount that the employer pays to FICA?

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 withholdin

Why do you have to pay FICA?

Because that is the way that you contribute to your social security and medicare insurance coverage and disability insurance that you may receive at a future date.

How do employers compute fica taxes for the pay period for 6200.00?

Gross earning that would be subject to FICA 6200 multiplied by 15.3%. That total dollar amount is then divided by 2 and 1/2 of that amount will be withheld from your gross ear

Do you pay income tax on FiCA?

Federal Insurance Contribution Act (FICA) Yes it is possible when you start receiving your social security benefits that you qualify for. From 50% to 85% of the amount that yo

Does your employer pay FICA taxes?

Yes. The way it works in most cases is that you pay FICA taxes in the amount of 6.2% of your gross income and your employer also pays the same amount. Also you are required to

Does an employer have to pay FICA for a part time employee?

Yes they do. All wages are subject to FICA and Medicare Taxes. The employer and employee each pay 6.2% of the gross income for Social Security Tax and each pays 1.45% of the g