FICA (Social Security + Medicare)

Full explanation

FICA stands for Federal Insurance Contributions Act. It covers two taxes: Social Security (6.2% of wages up to $184,500 for 2026) and Medicare (1.45% of all wages, plus an additional 0.9% on wages over $200,000). Your employer matches your 6.2% + 1.45%, for a combined 15.3%. If you're self-employed, you pay both halves (15.3%) as self-employment tax. FICA taxes fund Social Security retirement benefits and Medicare healthcare coverage.

Source: IRS Publication 15 — Employer's Tax Guide