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- FICA stands for the Federal Insurance Contributions Act. It is separate from federal income tax.
- The employee and employer each pay 7.65%, for a combined 15.3%.
- Only the Social Security part has a wage cap ($184,500 in 2026). Medicare has none.
- Pre-tax 401(k) contributions do not reduce FICA wages. Section 125 health premiums do.
- Employers must withhold, match, deposit, and report FICA. Errors lead to IRS penalties.
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Book a Free ConsultationContact your employer's payroll department to review the error and issue a corrected Form W-2c if necessary; if the employer cannot resolve an eligible overpayment, you may be able to claim a refund from the IRS.
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