Who pays FICA taxes?


Quick Answer

In 2013, any wage or salary-based employee must pay half of the FICA tax, and the employer pays the other half, according to CNNMoney. If one is self-employed, he must pay both halves.

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Full Answer

FICA tax is comprised of Social Security and Medicare obligations. The earned income limit on the Social Security portion of the FICA tax is $113,700, while no limits exist for Medicare payments. In addition, higher-income individuals as of 2013 must pay 0.9 percent Medicare tax in conjunction with the original 1.45 percent requirement, due to the Affordable Care Act. Furthermore, annual returns are required to be filed by April 15 with the Form 1040.

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