Q:

What does FICA mean on my pay stub?

A:

Quick Answer

The Federal Insurance Contributions Act is a type of income tax that contributes to Social Security and Medicare in the United States. As of 2015, FICA stipulates that 12.4 percent of earned income is paid into Social Security, and an additional 2.9 percent is paid into Medicare.

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Full Answer

Employees only pay 6.2 percent of the 12.4 percent paid into Social Security and 1.45 percent paid into Medicare. The employer pays the remaining 7.65 percent. Unlike the earned income paid into Social Security, which is currently capped at $118,500, there are no earned income limits on Medicare taxes. This means if an employee's salary is greater than $118,500, he still owes the full 1.45 percent Medicare tax on his total earned income.

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Related Questions

  • Q:

    What is the FICA tax rate?

    A:

    FICA, the Federal Insurance Contribution Act, governs collection of two separate taxes: Social Security and Medicare. Most employees have 6.2 percent of their wages withheld for Social Security and 1.45 percent for Medicare, a total of 7.65 percent. Most employers then match the withholding for a total of 15.3 percent.

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  • Q:

    How can you find your pay stub?

    A:

    You can find your pay stub either by looking at the document your employer provides twice per month or by requesting pay stubs from the corporate headquarters of your employer. Another method of finding your pay stub might be to log in to your employer via the Cloud.

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  • Q:

    What does "FIT" stand for on my pay stub?

    A:

    "FIT" on a pay stub stands for federal income tax. This is the amount of money an employer needs to withhold from an employee's income in order to pay taxes.

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  • Q:

    How can you check a Walmart paycheck stub?

    A:

    To view a Walmart pay stub, employees must log in to their account on the Walmart One associate site and click on the "Money" tab, then on the "View Pay Stub" link. Walmart One keeps track of all of the payments made to all registered Walmart associates, as stated by the Walmart corporate website.

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