INQUIRY 16-02, Federal Insurance Contribution Act (FICA)

Published: January 21, 2016
Effective: Pay Period 01, 2016

Summary

This bulletin supersedes INQUIRY 16-01, Federal Insurance Contribution Act (FICA) dated January 14, 2016. The FICA employee rate information has been revised.

For payments received on or after January 1, 2016, the FICA rate and maximum amount paid by employees remains at the 2015 rates, as described below.

Affected Systems

System

System Impact

None

None

Implementations

FICA Employee

The current Federal Social Security (Old-Age, Survivors, and Disability Insurance (OASDI)) and Medicare amounts are calculated by multiplying the current FICA-taxable wages by the appropriate FICA rate.

The FICA rate remains at 7.65 percent. Of the 7.65 percent, the 6.2 percent Social Security portion has a maximum annual earnings of $118,500 with a maximum amount paid by the employee of $7,347. The FICA Medicare rate remains at 1.45 percent on wages up to $200,000. The Medicare rate remains at 2.35 percent on wages over $200,000.

Medicare-Only Employee

The Medicare rate remains at 1.45 percent on wages up to $200,000. The Medicare rate remains at 2.35 percent for the portion of wages over $200,000.

No action on the part of the employee or the personnel office is necessary.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.