What Does FICA SS on My Paycheck Mean?

A deduction labeled “FICA SS” on your paycheck represents a mandatory federal payroll tax. FICA is an acronym for the Federal Insurance Contributions Act. This law requires that funds be withheld from employee wages to contribute to specific government programs.

FICA is composed of two distinct taxes: Social Security and Medicare. The “SS” on your pay stub specifically denotes the Social Security portion of the tax. You might also see this listed as “OASDI,” which stands for Old-Age, Survivors, and Disability Insurance, reflecting the types of benefits it funds.

The Purpose of Social Security Tax

Money withheld for Social Security tax is used to fund the Social Security program. These funds do not go into a personal account for your future use but are paid into a general trust fund. This system operates on a pay-as-you-go basis, where today’s workers’ contributions are used to pay benefits to current retirees and other beneficiaries.

The Social Security program provides three primary categories of benefits. The most well-known are retirement benefits, which provide a source of income to individuals once they reach retirement age. The program also provides disability benefits for workers who can no longer work due to a medical condition. Survivor benefits are paid to the families, including spouses and dependent children, of workers who have passed away.

Paying this tax is a shared responsibility between employees and their employers. Your employer is required to contribute an amount equal to the amount withheld from your paycheck. This matching contribution effectively doubles the total amount sent to the government on your behalf.

How Social Security Tax Is Calculated

For employees, the tax rate is 6.2% of your gross wages. Your employer withholds this amount from each paycheck. The employer also pays a separate 6.2% tax, bringing the total contribution to 12.4% for each employee.

This tax has an annual wage base limit. This is a specific income threshold, adjusted annually for inflation, beyond which Social Security taxes are no longer withheld. For 2025, the Social Security wage base limit is $176,100. This means that an employee will only pay the 6.2% tax on their earnings up to this amount within a calendar year.

For example, an employee earning $80,000 annually will pay $4,960 in Social Security taxes for the year ($80,000 x 6.2%). An employee earning $200,000 will pay tax only on the first $176,100 of their income, for a total of $10,918.20 ($176,100 x 6.2%). Income earned above this limit is not subject to the Social Security tax.

Social Security Tax for Self-Employed Individuals

Individuals who work for themselves, such as independent contractors or small business owners, also contribute to Social Security. Instead of FICA, they are subject to the Self-Employment Contributions Act (SECA) tax. This tax serves the same purpose of funding Social Security and Medicare benefits.

A self-employed individual is responsible for paying both the employee and employer portions of the tax. This results in a combined Social Security tax rate of 12.4% on their net earnings from self-employment. The same annual wage base limit also applies to self-employed individuals.

To account for the employer portion they must pay, self-employed individuals receive a specific tax deduction. They can deduct one-half of their total SECA tax paid when calculating their adjusted gross income on their personal tax return. This deduction acknowledges they are covering the share an employer would pay.

Handling Excess Social Security Tax Withholding

It is possible for an employee to have too much Social Security tax withheld during a year. This scenario most often occurs when an individual works for two or more employers in the same calendar year and their combined income exceeds the annual wage base limit. Each employer withholds Social Security tax up to the limit, regardless of what another employer has withheld.

For instance, if you earned $100,000 from a first job and $100,000 from a second job in 2025, both employers would withhold Social Security tax on your full earnings. This would result in tax being paid on $200,000 of income, which is over the annual limit. The amount withheld on the income above the limit is considered excess withholding.

You can claim a credit for this overpaid tax when you file your annual personal income tax return, typically Form 1040. Note that if a single employer withholds too much in error, you must seek a refund from that employer directly rather than claiming a credit on your tax return.