Both Medicare and Social Security are part of the FICA tax, but they serve different purposes and are withheld at different rates.
| Feature | Social Security | Medicare |
| Tax Rate | 6.2% of wages (up to the annual wage base limit) | 1.45% of all wages (no cap) |
| Additional Tax | None | Extra 0.9% for high earners |
| Purpose | Provides retirement, disability, and survivor benefits | Provides healthcare coverage for seniors (65+) and certain disabled individuals |
| Wage Base Limit (2024) | $168,600 | No limit |
Key Takeaway
- Social Security helps replace income in retirement or in case of disability.
- Medicare ensures access to healthcare when you’re older or disabled.
- Both contributions are required and appear as separate deductions on your pay stub for clarity.
With SecurePayStubs, Social Security and Medicare are calculated separately and displayed clearly on every pay stub for full accuracy and compliance.
Last modified: January 22, 2026
