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:
- 6.2% Social Security tax
- 1.45% Medicare tax
- 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
- a 1.45% Medicare tax