As an employer, you have several withholding and payment obligations, including withholding Federal Insurance Contributions Act (FICA) taxes from wages you pay to your employees.
FICA taxes are made up of:
- a 6.2% social security tax,
- a 1.45% Medicare tax, and
- a 0.9% Medicare surtax when an employee earns over $200,000.
You must withhold these amounts from your employees’ paychecks. You must also pay the employer’s portion, which is made up of:
- a 6.2% social security tax and
- a 1.45% Medicare tax.