Do employees and employers pay FICA taxes?
Emma Jordan
Published Mar 05, 2026
Paying FICA taxes is mandatory for most employees and employers under the Federal Insurance Contributions Act of 1935. The funds are used to pay for both Social Security and Medicare. If you own a business, you’re responsible for paying Social Security and Medicare taxes, too.
What employees are exempt from FICA?
International students, scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, and other aliens temporarily present in the United States in F-1,J-1,M-1, or Q-1/Q-2 nonimmigrant status are exempt from FICA taxes on wages as long as such services are allowed by USCIS.
Who is liable for FICA if employer fails to withhold taxes?
(8) If an employer erroneously fails to withhold FICA taxes from the wages of an employee, the employer is liable for the employee portion of the FICA tax (in addition to the employer portion of the FICA tax). The employee is also liable for the employee portion of the FICA tax.
How to calculate FICA deductions from employee paychecks?
The amount of FICA tax is 15.3% of the employee’s gross pay. Half of the total (7.65%) is withheld from the employee’s paycheck, and half is paid by the employer. For the employee above, with $1500 in weekly pay, the calculation is $1500 x 7.65% (.0765) for a total of $114.75.
Do you have to pay FICA on a pay stub?
This information can often be secured from pay stubs. In addition, if the employer refuses to withhold employment taxes from these wages and the IRS is unable to collect the employment taxes from the employer, the employee still has the responsibility to pay income tax and is ultimately responsible for his/her share of the FICA tax.
What happens if an employer does not pay taxes?
Employers who do not comply with the employment tax laws may be subject to criminal and civil sanctions for willfully failing to pay employment taxes. Employees who do not have taxes withheld nor remit them personally, are still liable for these taxes and may not qualify for Social Security, Medicare, or unemployment benefits.
