FICA tax refers to a payroll tax that takes 7.65% of an employee’s paycheck in order to fund Social Security (6.2%) and Medicare (1.45%). As far as limits go, anyone taking home an annual paycheck of over $142,800 won’t have to pay Social Security taxes on any of the money above $142,800.
However, with Medicare, the tax is raised from 1.45% to 2.35% if the employee makes over $200,000 a year.