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FICA — Payroll Definition

FICA paystub meaning: Federal Insurance Contributions Act — the Social Security and Medicare tax on your paycheck. Codes: FICA.

Federal Insurance Contributions Act — the Social Security and Medicare tax on your paycheck.

FICA stands for the Federal Insurance Contributions Act, a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare. In 2026, employees pay 6.2% for Social Security (up to a wage base of $184,500) and 1.45% for Medicare (no cap), for a total FICA rate of 7.65%. Your employer matches this amount, meaning the total FICA contribution is 15.3%.

Tax entries on a pay statement depend on taxable wages, current employee elections, filing status, pay frequency, jurisdiction, and current agency instructions. Compare the current-period amount with year-to-date totals and the employer-issued record before treating it as final.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.

Source: IRS Topic 751 — Social Security and Medicare Withholding Rates

Related terms

  • Social Security Tax — The 6.2% payroll tax that funds federal retirement and disability benefits (OASDI).
  • Medicare Tax — The 1.45% payroll tax that funds federal healthcare for seniors and disabled persons.
  • Self-Employment Tax (SE Tax) — The combined 15.3% Social Security and Medicare tax paid by self-employed individuals.