Social Security and Medicare taxes, collectively known as FICA (Federal Insurance Contributions Act) taxes, are mandatory payroll taxes that both employers and employees contribute to. These taxes fund Social Security benefits and Medicare healthcare coverage for eligible individuals.
How They Appear on Pay Stubs
On a pay stub generated through SecurePayStubs, you’ll see separate line items for:
- Social Security Tax: Calculated at 6.2% of the employee’s gross wages (up to the annual wage base limit).
- Medicare Tax: Calculated at 1.45% of all gross wages.
Both of these amounts are automatically deducted from the employee’s pay. Employers are required to match these contributions and remit the combined total to the IRS.
On SecurePayStubs
When creating a pay stub, SecurePayStubs automatically calculates and displays both employee and employer portions of FICA taxes based on current IRS rates. This ensures that your records are accurate and compliant with federal tax regulations.
Tip: For employees earning above the threshold, SecurePayStubs also accounts for the Additional Medicare Tax as required by the IRS.
Last modified: March 5, 2026
