FICA EE is your share of Social Security and Medicare taxes

FICA EE stands for Federal Insurance Contributions Act — Employee. It is the portion of Social Security and Medicare taxes that your employer deducts from your paycheck. The "EE" means you, the employee, are paying it, as opposed to "ER" (employer), which is what your employer pays separately on your behalf.

When you see "FICA EE" on your pay stub, you are looking at two separate taxes combined into one line: 6.2% for Social Security and 1.45% for Medicare. Together, that is 7.65% of your gross pay (before taxes and deductions). If you earn over $200,000 in a year, an additional 0.9% Medicare tax applies to income above that threshold.

These taxes fund Social Security retirement benefits, disability benefits, and Medicare health insurance for people 65 and older. The money does not sit in an account with your name on it — it goes into a general fund that pays current beneficiaries. When you retire, future workers' FICA contributions will fund your benefits.

Key Takeaways

  • FICA EE is 7.65% of your gross pay: 6.2% for Social Security and 1.45% for Medicare.
  • Your employer deducts FICA EE from your paycheck and sends it to the federal government, separate from income tax.
  • FICA EE is mandatory for almost all employees; there is no way to opt out or reduce it.
  • You can see how much FICA you have paid year-to-date on your pay stub, and the Social Security Administration tracks your lifetime contributions.

How much FICA EE comes out of each paycheck

The amount depends on your gross pay — the total you earn before any deductions. If you earn $1,000 in a paycheck, FICA EE will be $76.50. If you earn $2,500, it will be $191.25. The percentage stays the same; only the dollar amount changes with your income.

Social Security tax stops once you hit the wage base limit for the year. In 2024, that limit is $168,600 — meaning you pay Social Security tax only on income up to that amount. Medicare tax has no limit and continues on all earnings. This is why people with very high incomes see FICA EE drop as a percentage of their pay in the later months of the year.

Your pay stub will show FICA EE as a single deduction, but you can break it down yourself: multiply your gross pay by 0.062 for Social Security, and by 0.0145 for Medicare. The total is your FICA EE for that pay period.

Why FICA EE is separate from income tax

FICA EE and federal income tax withholding are two different things, even though both come out of your paycheck. Income tax goes to the Internal Revenue Service and funds general government operations. FICA EE goes to the Social Security Administration and Medicare and funds only those two programs.

Your employer withholds both, but they are tracked separately on your pay stub and reported separately to the government. When you file your tax return, you do not claim FICA EE as a deduction — it is already accounted for. However, you may see a credit for it depending on your income and filing status.

FICA EE on your Social Security record

The Social Security Administration keeps a record of every dollar you pay in FICA EE throughout your working life. This record determines how much you receive in retirement benefits. The more you earn and pay in, the higher your future benefit — up to a maximum.

You can view your Social Security earnings record online at ssa.gov by creating a my Social Security account. The record shows your earnings for each year and the FICA taxes you paid. It is worth checking every few years to make sure the numbers are correct, because errors can lower your future benefits.

If you notice a discrepancy — for example, earnings that should have been reported but were not — contact the Social Security Administration to correct it. The sooner you catch an error, the easier it is to fix.

Self-employed workers and FICA EE

If you are self-employed, you do not have an employer to deduct FICA EE from your paycheck. Instead, you pay self-employment tax, which covers both the employee and employer portions of Social Security and Medicare. Self-employment tax is 15.3% (12.4% for Social Security and 2.9% for Medicare), roughly double what an employee pays.

You calculate self-employment tax on your net business income and pay it when you file your tax return or make quarterly estimated tax payments. You can deduct half of your self-employment tax as a business expense, which reduces your taxable income slightly.

What happens if you work multiple jobs

If you have two or more jobs, each employer will deduct FICA EE from your paycheck based on your earnings at that job. You will pay Social Security tax on all earnings up to the annual wage base limit across all jobs combined. If your total earnings from all jobs exceed the limit, you may overpay Social Security tax.

When you file your tax return, you can claim a credit for the excess Social Security tax you paid. The IRS will refund the overpayment. This usually happens automatically if you file electronically, but you can also claim it manually on Form 1040.

FICA EE for non-citizens and visa holders

Most people working in the United States, regardless of immigration status, must pay FICA EE if they are employed. This includes people on work visas (H-1B, L-1, etc.), permanent residents, and undocumented workers. The requirement is based on employment, not citizenship.

Some visa holders may be exempt depending on their visa category and the terms of their employment. Consult your employer's human resources department or an immigration attorney if you are unsure whether FICA EE applies to you.

Frequently Asked Questions

Can I opt out of paying FICA EE?

No. FICA EE is mandatory for almost all employees. The only exceptions are certain religious groups that have received a waiver from the Social Security Administration, and some government employees hired before specific dates who are covered by alternative retirement systems.

Why does my FICA EE stop partway through the year?

Social Security tax stops once you reach the annual wage base limit (currently $168,600 for 2024). Medicare tax continues all year. If you earn above the limit, you will see FICA EE drop to just the Medicare portion in later paychecks.

Is FICA EE the same as payroll tax?

FICA EE is one type of payroll tax. Payroll tax is the umbrella term for all taxes deducted from your paycheck, including federal income tax, state income tax, and FICA (both employee and employer portions). FICA EE is specifically the Social Security and Medicare portion you pay.

What if my employer did not deduct FICA EE?

Contact your employer immediately and ask them to correct it. Your employer is legally required to deduct and remit FICA EE. If they refuse or continue not to deduct it, report them to the Department of Labor or the IRS. You are still responsible for the tax even if your employer does not deduct it.

Does FICA EE count toward my income tax refund?

FICA EE does not reduce your taxable income for federal income tax purposes. However, if you overpaid Social Security tax (by working multiple jobs), you can claim a credit on your tax return. This may increase your refund or reduce the tax you owe.