What is California FICA Tax?
The FICA Tax (Federal Insurance Contributions Act) is a United States payroll tax (or employment) imposed by the federal government on both employees and employers to fund the Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
How much is California FICA Tax?
The FICA tax rate is 15.3% of taxable wages. The taxable wage base is the first $118,500 paid in wages to each employee during a calendar year. The FICA tax is shared equally between the employee and the employer. The employee has to pay 7.65% FICA Tax on the wages earned while the employer has to match the contribution. Effectively, the employer is helping the employee pay 7.65% of the FICA Tax.
Please note the taxable wage base of $118,500 only applies to the Social Security Tax as Medicare Tax has no taxable wage base.
California FICA Tax Rate and FICA Tax Limits
The FICA tax rate is 15.3% of taxable wages. The FICA Tax is comprised of the Social Security Tax and Medicare Tax. The Social Security taxable wage base is the first $118,500 paid in wages to each employee during a calendar year. The Medicare Tax has no income limit.
California Social Security Tax Rate is 12.4%
California Medicare Tax Rate is 2.9%
NET California FICA Tax Rate is 15.3% (12.4% + 2.9%)
California FICA Tax Limit (Social Security Tax): $118,500
California FICA Tax Limit (Medicare Tax): No Income Limit
|Year||State||Tax Type||Tax Rate||Taxable Wage Base|
|2016||California||Social Security Tax||6.2%||$118500|
|2016||California||Medicare Tax||2.9%||No Income Limit|
|2016||California||Total FICA Tax||15.3%|
California FICA Tax Forms
To file FICA Tax, employers need to use Form 941. The Form 941 is due every quarter of the year.
|IRS||Form 941||Federal FICA Tax Form|
When is FICA Tax Due?
The FICA Tax is due every 3 months (quarter) of the year. The due dates are January 31, April 30, July 31 and October 31.
|FICA Tax||1st Quarter||January – March||April 30|
|FICA Tax||2nd Quarter||April – June||July 31|
|FICA Tax||3rd Quarter||July – September||October 31|
|FICA Tax||4th Quarter||October – December||January 31|
Who pays for FICA Tax?
FICA Tax is paid by both the employer and the employee. The 12.4% Social Security Tax and 2.90% Medicare Tax is shared equally between the employer and employee. The employer withholds FICA Tax from employee’s paycheck and remits the money to Internal Revenue Service (IRS) every quarter.
The Federal Withholding and State Withholding Tax is employee’s responsibility. Whereas, Unemployment Tax and FUTA Tax are employer’s responsibility.
|Tax||Who Pays the Tax?|
|FICA Tax||12.4% 50% Employee Responsibility (6.2%) 50% Employer Responsibility (6.2%)|
|Medicare Tax||2.9% 50% Employee Responsibility (1.45%) 50% Employer Responsibility (1.45%)|
|FUTA Tax||Employer's Responsibility|
|Unemployment Insurance||Employer's Responsibility|
|Federal Withholding Tax||Employee Responsibility|
|State Withholding Tax||Employee Responsiblity|
Frequently Asked Questions on California FICA Taxes
- What does FICA Tax stand for? Federal Insurance Contributions Act
- What is the FICA Income Limit for 2015? $118,500. Wages over $118,500 are exempt from Social Security Tax
- Who pays for California FICA Tax? Employee and Employer share the responsibility
Click here for more Frequently Asked Questions on FICA Tax and Withholding Tax.
For More Information on FICA Tax and State Withholding Tax
For more information, please contact Internal Revenue Service (IRS) regarding FICA Tax (Form 941) at 800-829-4933.
For California State Withholding Tax, please visit California Department of Revenue.
|Internal Revenue Service||www.irs.gov|
|California Dept of Revenue||www.ftb.ca.gov|
|California Dept of Labor||www.edd.ca.gov|
California five largest cities in terms of population: Los Angeles, San Diego, San Jose, San Francisco, and Fresno. The FICA Tax and State Withholding Tax is the same for all the locations.