What is the FICA tax rate applied to gross wages in the calculation?

What is the FICA tax rate applied to gross wages in the calculation?

• A. 6.2%
• B. 7.65%
• C. 1.45%
• D. 0%

Answer: (B)

FICA tax rate on gross wages is the combined withholding for Social Security and Medicare. For most employees this totals 7.65%: 6.2% goes to Social Security (up to the wage base) plus 1.45% goes to Medicare (no wage cap). An additional 0.9% Medicare tax can apply to higher earners, but that is separate from the standard 7.65% rate. Employers also pay a matching 7.65%, making the total FICA contribution 15.3% in typical payroll calculations.

FICA tax rate on gross wages is the combined withholding for Social Security and Medicare. For most employees this totals 7.65%: 6.2% goes to Social Security (up to the wage base) plus 1.45% goes to Medicare (no wage cap). An additional 0.9% Medicare tax can apply to higher earners, but that is separate from the standard 7.65% rate. Employers also pay a matching 7.65%, making the total FICA contribution 15.3% in typical payroll calculations.