Step-by-Step FICA Tax Calculation

Who Pays FICA Taxes and When Are They Due? A Simple Guide for Business Owners

As a business owner or HR professional, payroll taxes can feel like a constant headache. One of the biggest pieces is FICA (Federal Insurance Contributions Act) taxes, which fund Social Security and Medicare. If you’re not crystal clear on who pays what and when it’s due, you risk penalties—or miss opportunities to save.Let’s break it down simply. Who Pays FICA Taxes? FICA taxes are split 50/50 between employer and employee:

• Standard rate: 15.3% total
  – Employee pays 7.65% (withheld from paycheck)
  – Employer pays a matching 7.65%

This breaks into two parts:

1. Social Security: 12.4% total (6.2% employee + 6.2% employer)
   – Applied only up to the 2025 wage base of $176,100
2. Medicare: 2.9% total (1.45% each)
   – No wage cap
   – Plus an Additional Medicare Tax of 0.9% on wages over $200,000 (single filer) — employee only, no employer match

In short: You withhold the employee’s share and send it to the IRS along with your matching share. You’re essentially paying FICA twice — once for your employees and once for yourself. When Do You Pay and File FICA Taxes? Timing is everything. The IRS has strict schedules:

• Deposits (actually sending the money):
  – Monthly depositors: Due by the 15th of the following month
  – Semi-weekly depositors (larger payrolls): Due Wednesday or Friday, depending on payday (Your schedule is set based on your prior year lookback period — the IRS notifies you.)
• Reporting:
  – File Form 941 (Employer’s Quarterly Federal Tax Return) four times a year:
  • Q1: Due April 30
  • Q2: Due July 31
  • Q3: Due October 31
  • Q4: Due January 31 – Year-end: Issue W-2s to employees by January 31 and file with the SSA.

Miss a deadline? Penalties start at 5% per month, plus interest. Trust fund recovery penalties can even hit owners personally for willful failures.

Ready to stop overpaying FICA and start turning those tax dollars into better benefits for your team?Schedule a quick discovery call to see how much your company could save.

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Have questions about your specific payroll setup? Drop them in the comments below — happy to help!