A reference used to indicate the combination of the Social Security tax and the Medicare tax. For the year 2024, the employee’s portion of the FICA tax is 7.65% (the Social Security tax of 6.2% plus the Medicare tax of 1.45%) on the first $168,600 of an employee’s salary and wages. On an employee’s salary and/or wages in excess of $168,600 the employee’s portion of the FICA tax is 1.45% (consisting of only the Medicare tax). In addition, certain employees will be subject to a 0.9% Medicare surtax. The surtax will apply to wages, salaries, and a self-employed person’s net income that are in excess of specified amounts. See IRS.gov for details on the Medicare surtax.
In the year 2024, the employer’s portion of the FICA tax is 7.65% (the Social Security tax of 6.2% plus the Medicare tax of 1.45%) on each employee’s first $168,600 of salary and wages. On each employee’s salary and wages in excess of $168,600 the employer’s portion is the Medicare tax of 1.45%. Therefore, the combined employee and employer FICA tax for 2024 is 15.3% (7.65% + 7.65%) on each employee’s first $168,600 of salary and wages and then 2.9% (1.45% + 1.45%) on each employee’s salary and wages in excess of $168,600.
To learn more, see Explanation of Payroll Accounting.
Featured Review
"I want you to know just how much I love AccountingCoach, I use it all the time. I love the puzzles and tests, the information is broken down and extremely easy to understand. It's easy to find answers to specific questions. Finding AccountingCoach was the best thing for me and my employer benefits big time. I missed my opportunity to attend college but with AccountingCoach I have the same knowledge at my fingertips, forever! I can study at my own pace at home or at work. I am a full charge bookkeeper for a multi-million dollar business and occasionally I run into issues where I need help and I get it with AccountingCoach. Even if you have a degree you can't pass this up. No one remembers everything. Forever grateful. Thank you Harold." - Carrie H.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviewsWe now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: