The employer’s FICA tax rate for 2012 consists of 1) the Social Security tax rate of 6.2% of each employee’s first $110,100 of wages, salaries, etc., and 2) the Medicare tax of 1.45% of each employee’s total wages, salaries, etc. In other words, the employer’s FICA tax rate for 2012 is 7.65% of each employee’s first $110,100 of wages, salaries, etc. and then 1.45% of each employee’s wages, salaries, etc. that are above $110,100.

In addition to the employer’s FICA tax, there is also an employee’s FICA tax. However, the employee’s Social Security tax rate was reduced by two percentage points for the years 2012 and 2011.

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