Social Security and Medicare (FICA) Tax Deductions

FICA refers to the combined protection of Social Security and Medicare (FICA stands for Federal Insurance Contributions Act). In your statement of income, Social Security taxes are called OASDI, Old Age Survivor and Disability Insurance. Medicare is listed as Fed Med / EE.

  • Your FICA role depends on the team you belong to:
  • Employees
  • Students
  • Nonresident Alien Staff
  • Employees

Non-student employees are usually subject to FICA tax. Social Security (OASDI) is exempt from excessive income tax up to a certain annual fee, but no Medicare salary limit applies. Current discount rates are 6.2% of OASDI and 1.45% of Medicare. However, some government employees and employees of the police department have only Medicare tax exemptions. If an employee’s salary exceeds $ 200,000, another .9% of Medicare tax is deducted from the pay period when the salary exceeds $ 200,000 until the end of the calendar year.

FICA tax limits and tax rates: FICA taxes are deducted from tax to a certain limit.  For more information on FICA salary scales, visit the Social Security website and search for “OASDI and SSI Program Rates & Limits.”


Students usually do not have to pay Fica and Medicare tax. The University adheres to IRS rules in detecting student harassment from FICA deprivation.

Student Status

To qualify for a student exemption from FICA taxes, the employee must be attending classes regularly, and the student’s work must “take place with the aim of finding a way to learn,” in accordance with IRS rules.

  • Number of Hours of Credit
  • Employees will be eligible outside FICA if they come in contact with a half-time student sweat:
  • Undergraduate: 6 hours of credit
  • Graduate student: 3 hours of credit
  • Ph.D. representative: 1 hour of credit

Advanced master’s candidate: 1 hour of credit (as long as they have completed their course and are working on a thesis or dissertation of credit)

Staff Not Qualified Student FICA Exemptions

Full-time employees: Those who have a regular work schedule of 40 hours per week

Professional staff: Defined as employees:

Requires advanced knowledge in the field of science or study

It requires the same use of common sense and judgment

They are usually intelligent and have different personalities

Other choices can be made after considering the facts and circumstances.

  • Service personnel: Defined as qualified:
  • Retirement plans
  • Vacation, sick leave, and paid vacations
  • Tuition fees
  • Life insurance, expected care, and other considerations
  • Postdoctoral students and others

Medical residents and interns

Students Work at the Beginning or End of Study Period

If the course term begins or ends at any time within the payment period, the entire payment period is eligible for release from FICA.

Ground Rest or Over 5 Weeks

If a student is enrolled in the next semester, the student will be eligible for FICA exemption if the rest period is less than 5 weeks. If a student works during a school break for more than five weeks (summer, for example), the student will not be eligible for FICA exemption if the student does not attend classes during the break.

How FICA tax or maintenance tax is calculated

The tax code you work for deducts from your check more closely depending on what you put on your Form W-4, which you may have filled out when you started your career. Here are some things to know:

Form W-4 asks about the status of your marriage, your trust and other factors to help you calculate the maximum amount of denial. If you stop short, a lower tax will come out on your paycheck.

What you put on your W-4 is then powered by something called deprivation tables, which is used by your employers pay department to make sure that the state and federal tax exemptions are met. You can change your W-4 at any time. Just download a blank download from the IRS website, fill it out and donate to your resources or payment know more importants  visit  as Taylor Benefits stated

Some tax features you may hear about

FAT TAX: This represents the Federal Unemployment Tax Act. The tax pays the union scheme which provides unemployment benefits to people who lose their jobs. Employees do not pay this tax or be deducted from their salary. Employers pay for it.

Self-employment tax: If you are self-employed, you can also pay self-employment taxes, which are the full responsibility of Social Security and Medicare taxes. This is because the IRS imposes 12.4% of Social Security tax and 2.9% Medicare tax on salaries. Typically, workers and their employers split the bill, which is why workers with 6.2% and 1.45%, respectively, are deducted from their pay. Self-employed people, however, pay for everything. Because you may not be receiving the old payment, you may want to file a estimated quarterly tax instead of tax.

Why should I pay the FICA tax?

Employers should withhold tax from employees’ money because taxes pay-as-you-go to the United States. When you get money, the IRS needs its cutting as soon as possible.

Some people are unpaid laborers, meaning that they prefer not to have corporate tax deducted from their salaries. Social Security and Medicare taxes will continue to appear in their checks, however. Generally, you are free from denial only if two things are true:

You were refunded all your tax deductions withheld last year because you did not have a tax deduction.

Is it better to withhold taxes?

Remember, one of the main reasons you tax your income is to calculate your total income tax year and see how much of that tax you have already paid through tax deduction. If you happen to have paid too much, you may be eligible for a tax refund. If you happen to be paying less, you will have to pay tax.

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