FICA is a shared responsibility; the current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total on up to $137,700 of employee earnings. The amount paid into employees’ Social Security accounts during their working careers determines the Social Security benefit they receive as retirees—or the benefit families receive should the earner pass away. Medicare is funded by a 1.45% payment from the employer and a 1.45% deduction from the employee, or 2.9% of total earnings. If employees earn more than a threshold amount based on filing status, they must pay an additional 0.9% percent. FUTA is paid solely by employers; this tax cannot be deducted from employees' wages. The 2020 FUTA tax rate of 6% is applied to the first $7,000 employees earn. Businesses use IRS Form 940 to report FUTA tax paid and, if they paid state unemployment taxes in full and on time, may be eligible for up to a 5.4% federal tax credit.