The Federal Insurance Contributions Act (FICA) is a United States federal payroll tax that funds Social Security and Medicare. This calculator specifically focuses on the Social Security portion of FICA taxes. Social Security provides retirement, disability, and survivor benefits to eligible workers and their families.
How is Social Security Tax Calculated?
The Social Security tax rate is set by law and is applied to your earned income up to a certain annual limit. For the current year, this limit is often referred to as the "Social Security Wage Base."
Tax Rate: The employee's share of the Social Security tax is 6.2%.
Wage Base Limit: There is an annual maximum income subject to Social Security tax. Earnings above this limit are not taxed for Social Security. The wage base limit changes annually. For example, in 2023, it was $160,200. In 2024, it is $168,600. This calculator uses the 2024 limit ($168,600).
The Calculation Formula
The calculation is straightforward:
Social Security Tax = (Taxable Income) * 6.2%
Where:
Taxable Income: This is the lesser of your Annual Income or the Social Security Wage Base Limit for the year.
Example Calculation:
Let's say your Annual Income is $75,000, and the Social Security Wage Base Limit is $168,600 (for 2024).
Since $75,000 is less than $168,600, your Taxable Income is $75,000.
Social Security Tax = $75,000 * 0.062 = $4,650.00
Now, consider an Annual Income of $200,000.
Since $200,000 is greater than the $168,600 limit, your Taxable Income is capped at $168,600.
Social Security Tax = $168,600 * 0.062 = $10,453.20
Important Considerations:
* This calculator is for informational purposes only and does not constitute financial advice.
* It calculates the employee's portion of the Social Security tax. Employers also pay a matching 6.2% contribution.
* Self-employed individuals pay both the employee and employer portions (totaling 12.4%) through self-employment taxes, though they can deduct half of this amount.
* The Social Security Wage Base Limit is subject to change annually.
var SOCIAL_SECURITY_TAX_RATE = 0.062; // 6.2%
var SOCIAL_SECURITY_WAGE_BASE_2024 = 168600; // As of 2024
function calculateFica() {
var annualIncomeInput = document.getElementById("annualIncome");
var resultValueDiv = document.getElementById("result-value");
var annualIncome = parseFloat(annualIncomeInput.value);
if (isNaN(annualIncome) || annualIncome < 0) {
resultValueDiv.textContent = "Invalid Input";
return;
}
var taxableIncome = Math.min(annualIncome, SOCIAL_SECURITY_WAGE_BASE_2024);
var ficaSocialSecurityTax = taxableIncome * SOCIAL_SECURITY_TAX_RATE;
resultValueDiv.textContent = "$" + ficaSocialSecurityTax.toFixed(2);
}