FICA EE is the employee's share of Social Security and Medicare taxes

FICA EE is the portion of Social Security and Medicare taxes that your employer deducts from your paycheck. The "EE" stands for "employee." Your employer also pays a matching amount on your behalf — that portion is called FICA ER (employer). Together, these two amounts fund the Social Security and Medicare programs.

The amount deducted from your pay is set by federal law and does not change based on your income level or how many dependents you have. In 2024, the employee portion is 7.65% of your gross wages: 6.2% goes to Social Security and 1.45% goes to Medicare. If you earn over a certain threshold (which varies by year), an additional 0.9% Medicare tax applies.

FICA EE appears as a line item on your pay stub. You will see it deducted every pay period for as long as you work. Unlike income tax withholding, which can be adjusted based on your W-4 form, FICA EE deductions are automatic and mandatory — there is no way to reduce or avoid them through your employer.

Key Takeaways

  • FICA EE is the employee portion of Social Security and Medicare taxes, totaling 7.65% of your gross pay (or higher if you earn above the Medicare threshold).
  • The rate is fixed by federal law and does not depend on your income, filing status, or number of dependents.
  • Your employer deducts FICA EE from every paycheck and also pays an equal amount on your behalf.
  • The Social Security portion (6.2%) stops once you reach the annual wage cap, but the Medicare portion (1.45%) continues on all earnings.
  • FICA EE contributions build your future Social Security and Medicare benefits — you can view your estimated benefits through your Social Security account online.

How FICA EE is calculated on your paycheck

Your employer calculates FICA EE by multiplying your gross wages (before any deductions) by the fixed tax rate. If you earn $2,000 in a pay period, your FICA EE deduction is $153 (7.65% of $2,000). This happens automatically with every paycheck, regardless of whether you have other deductions like health insurance or retirement contributions.

The Social Security portion of FICA EE has an annual wage cap. In 2024, you stop paying the 6.2% Social Security tax once your earnings reach $168,600 for the year. After that point, only the 1.45% Medicare portion continues to be deducted. The wage cap changes each year based on average wage growth. If you work for multiple employers in the same year, each one deducts Social Security tax independently up to the cap — you may end up overpaying, but you can claim a credit when you file your tax return.

The Medicare portion has no wage cap. Once you earn over $200,000 (if single) or $250,000 (if married filing jointly), an additional 0.9% Medicare tax kicks in. This extra tax applies to all earnings above those thresholds and is also deducted from your paycheck.

The difference between FICA EE and other paycheck deductions

FICA EE is separate from federal income tax withholding, even though both appear on your pay stub. Income tax withholding is based on the W-4 form you fill out with your employer and can be adjusted if you claim more or fewer allowances. FICA EE, by contrast, is always the same percentage and cannot be changed through your W-4.

Some states also deduct state income tax, disability insurance, or paid family leave taxes from your paycheck. These are separate from FICA EE. Your employer is required by law to deduct FICA EE, but state and local taxes vary depending on where you live and work.

If you are self-employed, you pay both the employee and employer portions of FICA — called self-employment tax — which totals 15.3%. Employees only pay the 7.65% employee portion because their employer covers the other half.

What FICA EE contributions fund

The 6.2% Social Security portion of FICA EE goes into the Social Security trust fund. These contributions build your record of earnings and determine how much you will receive in Social Security retirement benefits, disability benefits, or survivor benefits later. The amount you receive is based on your highest 35 years of earnings and the age at which you claim.

The 1.45% Medicare portion funds Medicare Part A (hospital insurance) and Part B (medical insurance). When you turn 65, you become may be able to access for Medicare, and your FICA EE contributions over your working years help pay for that coverage. If you become disabled before 65, you may also become may be able to access for Medicare after 24 months of receiving Social Security Disability Insurance (SSDI).

Both programs are designed as insurance, not savings accounts. Your FICA EE contributions do not sit in a personal account with your name on it. Instead, current workers' contributions pay benefits to current retirees and disabled workers. When you retire or become disabled, future workers' contributions will help pay your benefits.

Checking your FICA EE record and estimated benefits

You can view your complete earnings record and estimated Social Security benefits by creating an account on ssa.gov (the Social Security Administration website). Your online account shows every year you paid FICA EE, how much you earned, and how much you contributed. This record is used to calculate your future benefits.

It is a good idea to check your earnings record every few years to make sure it is accurate. If you spot an error — such as a year where you earned money but no FICA EE was deducted, or earnings that are recorded under the wrong amount — you can contact Social Security to request a correction. Errors are usually caught within a few years, but it is better to report them early.

Your pay stub also shows your year-to-date FICA EE deductions. You can use this to track how much you have paid toward Social Security and Medicare in the current year. Once you reach the Social Security wage cap, you will notice the 6.2% Social Security deduction stop, though the 1.45% Medicare deduction will continue.

What happens if FICA EE is not deducted from your paycheck

If you work "off the books" or for an employer who does not deduct FICA EE, you are not building Social Security or Medicare credits. This means you will have a gap in your earnings record and may receive a lower Social Security benefit later, or may not be may be able to access for benefits at all if you do not have enough credits.

If you believe your employer is not deducting FICA EE when they should be, you can report it to the Internal Revenue Service (IRS) or the Department of Labor. You can also contact Social Security directly to ask about your earnings record. If your employer failed to deduct taxes, you may still owe them when you file your tax return, even if your employer did not withhold them.

Certain types of work are exempt from FICA EE, including work performed by nonresident aliens on temporary visas, some religious sect members, and certain student workers employed by their school. If you think your job might be exempt, check with your employer or the IRS website for your specific situation.

Frequently Asked Questions

Can I get my FICA EE money back if I leave my job?

No. FICA EE contributions are not refundable. They go into the Social Security and Medicare trust funds and are used to pay current benefits. You build credits toward your own future benefits based on how much you have paid in over your working years.

What if I work part-time — do I still pay FICA EE?

Yes. FICA EE is deducted from every paycheck, regardless of whether you work full-time or part-time. The percentage is the same: 7.65% of your gross wages. If you work multiple part-time jobs, each employer deducts FICA EE from your pay.

Does FICA EE count toward my income tax refund?

No. FICA EE and federal income tax withholding are separate. Your refund is based only on income tax withholding and credits you claim on your tax return. FICA EE does not reduce your taxable income or affect your refund amount.

Why do I pay FICA EE if I might not live long enough to collect Social Security?

Social Security is insurance, not a savings plan. FICA EE contributions protect you and your family in case you become disabled or die before retirement age. Your spouse and children may be able to receive survivor benefits based on your earnings record, even if you never collect retirement benefits yourself.

Can my employer choose not to deduct FICA EE?

No. Federal law requires all employers to deduct FICA EE from employee paychecks. If your employer is not deducting it, that is illegal, and you should report it to the IRS or Department of Labor. You can also contact your state's labor department for help.