FICA Calculator for 2011, 2012

Payroll taxes for Social Security benefits are collected under the authority of the Federal Insurance Contributions Act, or FICA. Most people refer to these taxes as FICA tax. FICA remains the tax collection mechanism for Social Security. You can determine your amount due by using a FICA tax calculator.

What is the FICA tax used for?

FICA today is used to provide for the federal system of Old Age, Survivors, and Disability Insurance as well as hospital insurance.Old Age, Survivors and Disability claims are all funded by the Social Security system, while hospital insurance is funded by a Medicare tax.

Who is responsible for paying the FICA tax?

Both employees and employers are required to contribute to FICA taxes through regular payroll deductions. However, there is a limit to the amount of FICA taxes an employee is required to pay.

How much tax are you required to pay?

FICA taxes are collected at a rate of 7.65% on gross earnings - earnings before any deductions. The breakdown of FICA is 6.2% for Social Security (Old-Age, Survivors, and Disability Insurance or OASDI) and 1.45% for M2010 Medicare tax.

What is the maximum amount I have to pay?

FICA Tax Rate = 7.65% (gross earnings)

Social Security Limit = $106,800

Maximum Social Security Contribution = $6,621.60

There is a FICA calculator available to make the process of figuring your employees withholding taxes easier. For example, Intuit offers a payroll tax calculator which will calculate the amount of Fica tax to be withheld, and all the other required payroll taxes.