The 2014 FICA tax rate is 6.2% for social security taxes and 1.45% for Medicare taxes. This is the employee’s contribution. The employer gives that much again for a total of 12.4% and 2.9% respectively that goes to the IRS on behalf of each employee. This reflects no change from 2013 (most of tax year 2012).
The Social Security part of FICA gets taxes on wages up to a certain amount. It’s called the Social Security Wage Base. For 2014 (tax year 2013) the Social Security wage base is $113,700. For 2014 the rate is expected to be around $115,500.
There is no wage base for the Medicare tax. All wages are subject to the Medicare tax.
The employer’s and employee’s contributions are normally equal rates. It was only during 201 and part of 2012 that there was a temporary dip of 2% in the employee’s share of the Social Security tax.
What is new for 2014? The 2014 FICA tax rate is different in regards to Medicare tax. There is a new Medicare tax on the income of wealthy individuals. It’s a 0.9% tax on any earnings above a threshold amount. For 2014 the threshold is $200,000 for heads of household and single filers. For joint filers 2014 Medicare threshold amount is $250,000, and that’s split in two for married filing separately.
This is called the Additional Medicare Tax and it takes effect January 1, 2013. Therefore, it will begin to take effect on the 2014 FICA tax rate for tax year 2013 tax returns.
For more information on the 3014 FICA tax rate refer to the IRS Publication 15, Circular E, Employer’s Tax Guide.