92–336, §203(b)(4)(C), effective with respect to remuneration paid after 1974, substituted “contribution and benefit base” for “$12,000”. 93–66, §203(d), applicable only with respect to remuneration paid after, and taxable years beginning after, 1973 (as provided in section 203(e) of Pub. 93–66, set out as a note under section 409 of fica meaning Title 42), amended section 203(b)(4)(C) of Pub. 92–336 (set out as 1972 Amendment note hereunder) substituting “$12,600” for “$12,000”. 93–233, §5(d), applicable only with respect to remuneration paid after, and taxable years beginning after, 1973 (as provided in section 5(e) of Pub. 93–233, set out as a note under section 409 of Title 42), amended section 203(b)(4)(C) of Pub.
- (ii) the number of hours for which qualified family leave wages were provided to employees covered under the collective bargaining agreement described in section 3131(e)(3)(A)(iii) during the calendar quarter.
- For purposes of this section, the term “wages” means wages (as defined in section 3121(a), determined without regard to paragraphs (1) through (22) of section 3121(b)) and compensation (as defined in section 3231(e), determined without regard to the sentence in paragraph (1) thereof which begins “Such term does not include remuneration”).
- (C) the tax imposed by section 3101 on such payments shall be paid by the employee.
- (B).
- (b)(6)(B).
Effective Date of 1986 Amendments
- (c)(2), is Pub.
- 100–203, §9005(b)(2), inserted “under the age of 21 in the employ of his father or mother, or performed by an individual” after first reference to “individual”.
- 110–172, set out as a note under section 402 of this title.
- 97–34 applicable to remuneration paid after Dec. 31, 1981, see section 124(f) of Pub.
No. FICA generates money for Medicare and Social Security programs through taxes imposed on nearly every employee and employer in the United States. Since self-employed taxpayers are defined as both the employee and employer, they are taxed at a rate of 12.4% (6.2% + 6.2%). Their earnings are capped at $176,100 in 2025 — just like FICA. Any gross wages above this amount are not subject to Social Security tax. The Self-Employment Contributions Act (SECA) tax applies to individuals who are self-employed and do not work for an employer.
Employee Login
Federal Income Tax uses a progressive tax system, meaning higher incomes are taxed at higher rates, and allows for various deductions and exemptions to reduce the taxable amount. Both employees and employers are responsible for contributing to FICA taxes. As you can see from the taxes listed above, employees and employers are responsible for paying the same amount in Social Security and Medicare taxes. In addition, if an employee earns over $200,000, employers are responsible for collection up until wages exceed this limit. The additional 0.9% surtax will be allocated to the employee.
Plan Amendments Not Required Until January 1, 1989
99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. 99–514, set out as a note under section 48 of this title. 101–239 applicable with respect to any agreement in effect under section 3121(l) of this title on or after June 15, 1989, with respect Accounting for Technology Companies to which no notice of termination is in effect on such date, see section 10201(c) of Pub. 101–239, set out as a note under section 406 of this title.
Effective Date of 1993 Amendment
100–647, §1001(g)(4)(B)(i), inserted “(determined without regard to section 274(n))” after “section 217”. 101–140 amended this section to read as if amendments by Pub. 100–647, §1011B(a)(22)(A), had not been enacted, see 1988 Amendment note below. (l)(5). (7) as (5) and struck out former par. (5) relating to no renewal of agreement.
Effective Date of 1976 Amendments
- 98–369, §531(d)(1)(A)(i), inserted “(including benefits)” before “paid in any medium” in introductory provisions.
- 87–293 applicable with respect to service performed after Sept. 22, 1961, but in the case of persons serving under the Peace Corps agency established by executive order applicable with respect to service performed on or after the effective date of enrollment, see section 202(c) of Pub.
- For purposes of this chapter, in the case of domestic service described in subsection (a)(7)(B), any payment of cash remuneration for such service which is more or less than a whole-dollar amount shall, under such conditions and to such extent as may be prescribed by regulations made under this chapter, be computed to the nearest dollar.
- “(i) The person does not provide any dependent care or similar services in any facility owned or operated by the State.
- 111–148, §10906(a), substituted “0.9 percent” for “0.5 percent” in introductory provisions.
- (n)(5)(B), is act June 24, 1948, ch.
- 88–272 applicable to remuneration paid after Dec. 31, 1962, see section 220(d) of Pub.
102–318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Pub. 102–318, ledger account set out as a note under section 401 of this title. “(v) No more than ten percent of the State’s employees are provided with insurance under title II of the Social Security Act 42 U.S.C. 401 et seq. pursuant to voluntary agreements with the Secretary of Health and Human Services under section 218 of such title 42 U.S.C. 418.