INQUIRY 18-05, Federal Insurance Contribution Act (FICA)
Published: December 17, 2018
Effective: January 01, 2019
Summary
For payments received on or after January 1, 2019, the Federal Insurance Contributions Act (FICA) maximum amount paid by employees will increase as described below.
FICA Employee
The current Federal Social Security (Old-Age, Survivors, and Disability Insurance (OASDI)) and Medicare amounts are calculated by multiplying the current FICA-taxable wages by the appropriate FICA rate.
The FICA rate remains 7.65 percent. Of the 7.65 percent, the 6.2 percent Social Security portion has a maximum annual earnings of $132,900 with a maximum amount paid by the employee of $10,166.85. The FICA Medicare rate remains 1.45 percent on wages up to $200,000. The FICA Medicare rate remains 2.35 percent for the portion of wages over $200,000.
Medicare-Only Employee
The Medicare rate remains 1.45 percent on wages up to $200,000. The Medicare rate remains 2.35 percent for the portion of wages over $200,000.
No action on the part of the employee or the personnel office is necessary.
Inquiries
For questions about National Finance Center (NFC) processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at or via the customer service portal.