who is subject to fica tax
FICA and Medicare Taxes. The Federal Insurance Contributions Act (FICA) provides for a system of old-age, survivors, disability, and hospital insurance. The 2017 FICA tax rate is 6.2% for the employee and 6.2% for the employer up to the wage base limit of $127,200. The current Medicare tax rate is 1.45% for both the employee and employer. There is no wage base limit for Medicare tax. Certain deductions are not subject to FICA and Medicare taxes.