The FICA is a law passed in the U.S. which requires employees to pay a certain percentage of their income towards the United States Medicare and Social Security programs. In turn, their employer matches this with the same ultimate recipients.

All employees of the United States are required to participate in FICA. Self-employed persons technically are immune from FICA regulations but must pay a combined tax of 15.3%. Self-employed…self-taxed.

As FICA is set on a percentage, it flexes with an employee’s pay, so there is no escape.

While Medicare has no defined upper limit for contributions, the same cannot be said for Social Security, which does have a maximum limit.