Social Security Fica Tax 2025

Social Security Fica Tax 2025. Maximum Social Security Withholding 2025 Nadine D. Mast According to the intermediate projection issued in a May 2024 report, the Social Security taxable wage next year will be $174,900 This makes the FICA tax rate, which is the combined Social Security tax rate and the Medicare tax rate, 7.65% for 2025, the same as it was in 2024

FICA explained What to know about Social Security, Medicare tax rates
FICA explained What to know about Social Security, Medicare tax rates from www.usatoday.com

That'd be a $6,300 increase from the current number of $168,600 The FICA tax consists of: Social Security Tax (OASDI): 12.4% total (6.2% paid by the employer, 6.2% by the employee), applied only to wages up to $176,100 in 2025.

FICA explained What to know about Social Security, Medicare tax rates

A maximum amount of compensation is subject to the Social Security tax, but there's no maximum for Medicare tax The Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and the employer Since the Social Security tax rate is 6.2% (your employer also pays 6.2%), they would save $620 on Social Security taxes

Fica Rates For 2025 Aaron Qi. At the 6.2% rate, the maximum Payroll would withhold from each employee's wages for Social Security tax would reach $10,843.80. The employer must match these percentages for a grand total of 15.3%.

2023 FICA Tax Limits and Rates (How it Affects You). FICA is a 15.3% payroll tax that funds Social Security and Medicare The Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and the employer