If FICA Tax same as Federal Withholding Tax?
Yes, FICA Tax (Social Security Tax + Medicare Tax) is the same as Federal Withholding Tax. Some people just refer as payroll tax.
Social Security and Medicare taxes are paid both by the employees and the employer. Both parties pay half of these taxes. Employees pay half, and employers pay the other half.
- Social Security (Employee pays 6.2%)
- Social Security (Employer pays 6.2%)
- Medicare (Employee pays 1.45%)
- Medicare (Employer pays 1.45%)