What is the FICA tax rate for employees?

The FICA tax rate for employees, which encompasses Social Security and Medicare taxes, is indeed 7.65%. This total rate includes two components: 6.2% for Social Security and 1.45% for Medicare. The Social Security portion is applicable on earnings up to a certain wage base limit, while the Medicare portion does not have an upper income cap.

Thus, the 7.65% rate reflects the combined contribution that employees are required to make under the Federal Insurance Contributions Act (FICA). This rate is critical for ensuring that employees contribute to their future social security benefits and Medicare coverage, making it a foundational aspect of payroll taxation.