1. FICA and Medicare Payroll Tax FICA Stands for Federal Insurance Contribution Act Provides benefits for retired workers and their dependents Also provides benefits for disabled workers and their dependents Medicare Government service that provides healthcare for: Senior Citizens Disabled U.S. Citizens

2. FICA and Medicare Payroll Tax Who has to pay FICA/Medicare taxes? All employees must pay this tax except: 1.Any student that works for the school he/she attends 2.Foreign diplomats 3.Non-resident alien on a temporary visa

3. FICA and Medicare Payroll Tax How are FICA and Medicare taxes calculated FICA: 6.2% of income paid by employee. 6.2% of income paid by employer FICA is capped in 2014 at $117,000 Medicare: 1.45% of taxable gross There is no income cap on Medicare