When Are FICA Taxes Due for Employers & the Self-Employed?

Understanding FICA Tax Due Dates

FICA taxes, an acronym for the Federal Insurance Contributions Act, represent mandatory contributions to federal programs that provide broad social safety nets. These taxes fund Social Security, which offers retirement, disability, and survivor benefits, and Medicare, which provides health insurance for individuals generally aged 65 or older and those with certain disabilities. Understanding the specific due dates for these taxes is important for employees, employers, and self-employed individuals alike, as the payment mechanisms and schedules differ significantly.

FICA Basics and Employee Withholding

FICA taxes are composed of Social Security and Medicare. The Social Security tax rate is 6.2% on earnings up to an annual limit. The Medicare tax rate is 1.45% on all earnings, with no wage limit. An additional Medicare tax of 0.9% applies to wages exceeding $200,000, though employers do not match this additional tax.

For most employees, FICA taxes are automatically deducted from their paychecks by their employer. The employer handles the payment of both the employee’s withheld portion and their own matching contribution to the IRS. Employees do not have specific due dates to track for FICA tax payments, as this obligation falls to the employer.

Employer FICA Tax Deadlines

Employers carry the responsibility for withholding the employee’s share of FICA taxes and remitting both the employee and employer portions to the IRS. Employers must determine their deposit schedule—either monthly or semi-weekly—based on their total tax liability during a “lookback period.” This lookback period for Form 941 filers is generally the 12-month period ending on June 30 of the preceding year.

If an employer’s total tax liability during the lookback period was $50,000 or less, they are generally a monthly depositor. Monthly deposits are due by the 15th day of the following month for taxes accumulated in the previous month. For example, FICA taxes from June wages would be due by July 15.

Employers with a tax liability exceeding $50,000 during the lookback period are typically semi-weekly depositors. Under this schedule, taxes accumulated on Wednesday, Thursday, or Friday are due by the following Wednesday. Taxes accumulated on Saturday, Sunday, Monday, or Tuesday are due by the following Friday. A special rule applies if an employer accumulates $100,000 or more in taxes on any single day; these funds must be deposited by the next business day, regardless of their usual deposit schedule.

In addition to deposits, employers must file Form 941, Employer’s Quarterly Federal Tax Return, to report withheld income, Social Security, and Medicare taxes. The due dates for Form 941 are April 30 (for Quarter 1: January-March), July 31 (for Quarter 2: April-June), October 31 (for Quarter 3: July-September), and January 31 of the following year (for Quarter 4: October-December). If all taxes were deposited on time, employers typically receive an additional 10 calendar days to file Form 941. For very small businesses with an annual employment tax liability of $1,000 or less, Form 944, Employer’s Annual Federal Tax Return, can be filed once a year by January 31. Failure to meet these deposit and filing deadlines can result in penalties, which vary depending on the lateness of the payment or filing. For instance, late deposit penalties can range from 2% to 10% of the unpaid amount, based on the number of days late.

Self-Employed FICA Tax Deadlines

Self-employed individuals are responsible for paying FICA taxes through the Self-Employment Contributions Act (SECA) tax. This tax covers both the employee and employer portions of Social Security and Medicare, totaling 15.3% (12.4% for Social Security and 2.9% for Medicare). Since taxes are not withheld from their income, self-employed individuals generally pay these taxes as part of their estimated quarterly tax payments.

The IRS sets specific due dates for these estimated tax payments throughout the year. The first quarter payment (for income earned January 1 to March 31) is due April 15. The second quarter payment (for income earned April 1 to May 31) is due June 15. The third quarter payment (for income earned June 1 to August 31) is due September 15. Finally, the fourth quarter payment (for income earned September 1 to December 31) is due January 15 of the following year.

It is important to note that if any of these due dates fall on a weekend or a legal holiday, the deadline is shifted to the next business day. Underpayment or late payment of estimated taxes can lead to penalties.