Navigating FICA (Federal Insurance Contributions Act) can be complex, but our expert assistance makes it easier. We provide guidance on understanding your FICA obligations, ensuring accurate tax payments, and staying compliant with federal regulations. Whether you’re an individual or an employer, our support helps you manage FICA responsibilities efficiently and effectively.
FICA taxes are mandatory for most employees working in the U.S., including those who are U.S. citizens, residents, and certain non-residents. Employers are also required to pay a matching amount. Self-employed individuals must pay both the employee and employer portions through self-employment tax. Certain FICA exemptions may apply based on specific circumstances or agreements.
Certain individuals and situations may qualify for FICA exemptions or special cases. For
example, some students and certain non-resident aliens may be exempt from FICA taxes.
Additionally, specific religious groups and governmental employees might have different
FICA obligations. It’s important to understand these exceptions to ensure correct tax
treatment and compliance.
Ensuring FICA compliance involves accurate tax withholding, timely payments, and proper
reporting to the IRS. Employers must file quarterly payroll tax reports and provide annual
Form W-2s to employees. Staying compliant helps avoid penalties and ensures that
contributions are correctly allocated to Social Security and Medicare programs.
Overpayment of FICA taxes or errors in withholding may require adjustments and refunds.
