# FICA

*Taxes — Finicade finance glossary*

FICA is the US payroll tax funding Social Security and Medicare — 6.2% and 1.45% from you, matched by your employer. The Social Security portion stops above an annual wage cap, which is why high earners see their take-home pay rise late in the year, while the Medicare portion has no cap and gains a surtax above a threshold. It's levied on gross wages before most deductions, so it's the tax hardest to plan around.

**Also known as:** Federal Insurance Contributions Act, Social Security tax, Medicare tax

**Related terms:** [Payroll Tax](https://finicade.com/glossary/payroll-tax), [Self-Employment Tax](https://finicade.com/glossary/self-employment-tax), [Social Security](https://finicade.com/glossary/social-security), [Pay Stub](https://finicade.com/glossary/pay-stub), [Withholding](https://finicade.com/glossary/withholding)

Source: https://finicade.com/glossary/fica