What Is Fed Med/EE and Fed OASDI/EE?
Demystify 'Fed Med/EE' and 'Fed OASDI/EE'. Learn what these essential payroll deductions fund and how they impact your take-home pay.
On your pay stub, you might notice deductions labeled “fed med/ee” and “fed oasdi/ee.” These terms represent amounts withheld from your gross pay to support specific federal programs.
Understanding FICA Taxes
The terms “fed med/ee” and “fed oasdi/ee” are components of taxes collected under the Federal Insurance Contributions Act (FICA). FICA is a federal law requiring both employers and employees to contribute to the Social Security and Medicare programs. These mandatory taxes fund federal initiatives providing financial benefits to retirees, workers with disabilities, and healthcare services, primarily for the elderly.
Old-Age, Survivors, and Disability Insurance
“Fed oasdi/ee” refers to the Old-Age, Survivors, and Disability Insurance (OASDI), also known as Social Security. This program provides financial support to individuals who have lost income due to retirement, disability, or the death of a primary wage earner. It offers retirement benefits for eligible workers who have contributed to the system.
OASDI also provides disability benefits for those unable to work due to a severe medical condition. Survivor benefits are available to families of deceased workers, including spouses and dependent children. Eligibility for these benefits is based on a worker’s contributions to Social Security, tracked using their Social Security number.
Medicare Tax
“Fed med/ee” represents the Medicare tax, which funds the federal Medicare program. This program provides health insurance primarily for individuals aged 65 or older. It also extends coverage to some younger people with certain disabilities and individuals with End-Stage Renal Disease.
The Medicare tax supports different parts of the Medicare program. Medicare Part A, which covers hospital insurance, receives most of its funding through this payroll tax. Other parts of Medicare, such as Part B for medical services and Part D for prescription drugs, are funded through general revenues and premiums.
Your Share as an Employee
The “EE” in “fed med/ee” and “fed oasdi/ee” signifies these are the employee’s contributions. Employers also pay a matching portion of these taxes. For 2025, the employee’s share of the OASDI tax is 6.2% on earnings up to an annual wage base limit of $176,100.
The Medicare tax rate for employees is 1.45% of all taxable earnings, with no wage base limit. This means every dollar of your wages is subject to the Medicare tax. If an employee’s wages exceed $200,000 in a calendar year, an additional Medicare tax of 0.9% is withheld from earnings above that threshold, with no employer match.