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No, but they are closely connected. FICA, the Federal Insurance Contributions Act, refers to the taxes that largely fund Social Security. FICA taxes also provide a chunk of Medicare’s

budget.  Most workers have FICA taxes withheld directly from their paychecks. These deductions claim 6.2 percent of an employee’s gross pay for Social Security, up to an income threshold

commonly termed “maximum taxable earnings.” In 2025, the threshold is $176,100; any earnings above that are not subject to Social Security taxes. The limit is adjusted annually based on

national changes in wage levels. Employers must match the 6.2 percent Social Security contribution. There is no comparable earnings maximum for Medicare; the 1.45 percent Medicare tax

included in FICA is levied on all your work income. Higher earners pay an Additional Medicare Tax of 0.9 percent on wages above $200,000 for a single taxpayer or head of household and

$250,000 for a married couple who file taxes jointly. Employers match the 1.45 percent FICA tax for Medicare but not the additional tax — that is only paid by employees. KEEP IN MIND *

Self-employed people pay into Social Security and Medicare through a different tax, called SECA (Self-Employment Contributions Act) and collected via their annual federal tax returns. They

pay both the employer and employee shares. * FICA and SECA taxes do not fund Supplemental Security Income (SSI) benefits. Those are paid out of general tax revenues (although the program is

administered by the Social Security Administration).