FICA line items on your stub are not "extra federal tax." They fund Social Security and Medicare under separate statutes with separate caps and thresholds.
Social Security vs. Medicare on Your Stub
- OASDI (Social Security): 6.2% employee share on wages up to the annual wage base.
- Medicare: 1.45% on all covered wages; additional 0.9% on wages above $200,000 single / $250,000 MFJ [from config].
The $176,100 Wage Base in 2026
Per PaycheckScope config/tax.php, Social Security tax stops on wages above $176,100 in 2026. Maximum employee SS tax = $10,918.20 (176,100 × 6.2%).
Why High Earners See a Mid-Year Pay Bump
Once YTD wages cross $176,100, SS withholding drops to zero for the rest of the year. Net pay jumps even though gross is flat — a common "raise" in October that is really the wage cap.
Example: $200,000 salary
SS tax = $10,918 (capped). Medicare = $2,900 base + $0 on additional Medicare below threshold. Compare to uncapped hypothetical 6.2% on full $200k = $12,400 — you keep $1,482 from the cap alone.
Multiple Jobs and FICA Overpayment
Two employers each withhold SS up to the cap. If combined wages exceed $176,100, you may overpay and claim excess on Form 1040. Track both W-2 Box 4 amounts.
FICA vs. Federal: Different Rules
401(k) reduces federal income tax withholding but not FICA on traditional deferrals. HSA and health premiums often reduce both federal and FICA. Know which deductions hit which lines.
Wage base and rates from PaycheckScope 2026 config; IRS Publication 15 for employer rules.
Social Security: 6.2% With a Wage Cap
Employee Social Security tax is 6.2% of wages up to the annual wage base — $176,100 for 2026. Employer pays matching 6.2% (not shown on your net). Once YTD SS wages hit the cap, SS withholding stops for the rest of the year; your net paycheck increases slightly in November or December if you cross the threshold late.
Medicare: 1.45% Plus Additional Medicare Tax
Medicare employee tax is 1.45% with no wage cap. Additional Medicare Tax of 0.9% applies to wages above $200,000 for single filers ($250,000 married filing jointly) — employers withhold on wages above $200,000 regardless of filing status, reconciled on Form 1040.
FICA vs. Federal Income Tax
FICA applies to gross wages (with few exceptions); federal income tax applies to taxable wages after pre-tax 401(k) and health premiums. That is why deferring $500 to traditional 401(k) saves income tax but not FICA — a $500 deferral might cost ~$462 net, not $500.
Frequently Asked Questions
Do self-employed pay FICA?
Yes via self-employment tax on net earnings — both employee and employer portions combined.
Is FICA refundable?
No — unlike income tax, FICA is not reconciled to a refund except rare overpayment if multiple employers exceed the cap.
Where do I see FICA on net pay?
Model gross in the salary-after-tax calculator — SS and Medicare lines appear in breakdown.
Employer FICA Match Is Not Extra Money in Your Account
Employers pay a matching 6.2% Social Security and 1.45% Medicare on your wages (with the same Social Security wage base). That employer share never appears as spendable net pay — it is a payroll tax cost of employing you. Do not add employer FICA to your personal total compensation the way you add a 401(k) match you will eventually vest. Your stub’s employee OASDI and Medicare lines are what reduce the deposit.
Worked Path to the $176,100 Cap on a $195,000 Salary
On $195,000 of Social Security wages in 2026, employee SS tax = 6.2% × $176,100 = $10,918.20; wages above $176,100 skip further SS. Medicare continues: 1.45% × $195,000 = $2,827.50, and Additional Medicare Tax of 0.9% may apply above statutory thresholds for your filing status. Roughly the final $18,900 of wages save ≈ $1,172 of employee SS versus uncapped math — which is why high earners notice a mid-year net bump once the wage base is reached. Estimate timing with YTD SS wages on each stub.
Two Jobs and Claiming Excess Social Security Withholding
If Job A and Job B each withhold SS without seeing the other’s wages, combined withholding can exceed $10,918.20 for 2026. Excess employee SS is creditable on your Form 1040 when you file — it is not automatically refunded by either employer mid-year. Track both YTD Box 3 equivalents. Preview combined nets in the salary-after-tax calculator when modeling a second W-2 role.
Side Gigs and the Self-Employment Tax Contrast
W-2 FICA is 7.65% employee share with an employer match behind the scenes. Sole-proprietor Schedule C income generally faces self-employment tax near 15.3% on net earnings (with an above-the-line deduction for half). A $10,000 side profit can cost roughly $1,400–$1,500 in SE tax alone before income tax — which is why “same gross as overtime” freelancing is not the same net as W-2 OT. Budget quarterly estimates if 1099 work grows beyond hobby scale.
Frequently Asked Questions
Does the Social Security wage base change every year?
It is inflation-adjusted most years; confirm the figure published for the tax year you are planning.
Is Additional Medicare Tax matched by my employer?
No — the 0.9% Additional Medicare Tax is employee-only above the threshold.
Do pre-tax 401(k) deferrals reduce Social Security wages?
Traditional 401(k) deferrals generally still count as Social Security wages even when they reduce income-tax wages.
Additional Medicare Tax Above Thresholds
Wages above IRS Additional Medicare thresholds can trigger an extra 0.9% employee Medicare tax. Employers may begin withholding mid-year when a single job crosses the line; dual-income households sometimes owe the balance at filing. Model high earners carefully when projecting bonuses that push combined wages over the threshold.
Disclaimer: This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules change by year, state, and individual circumstances. Confirm figures with official IRS and state revenue publications or a qualified tax professional before making withholding, relocation, or investment decisions.