This page lists what FICA asks of employers, the 2026 figures with the announced 2027 wage base, and employer penalties. Start with the FICA overview; the checklist and FAQs page turns it into a routine.
What the law requires
| Requirement | In plain words | Where it comes from |
|---|---|---|
| Withhold and match | Withhold 6.2% Social Security (up to the wage base) and 1.45% Medicare, and pay an equal employer share | IRC 3101, 3111 |
| Additional Medicare Tax | Withhold 0.9% once an employee's wages pass $200,000 in the year; no employer match | IRC 3101(b)(2), 3102(f) |
| Deposits | Send withheld income tax and both FICA shares by electronic transfer; next business day once $100,000 builds up | Pub. 15, sec. 11 |
| Quarterly return | File Form 941 each quarter; Form 944 only if the IRS notified you in writing | Pub. 15, sec. 12 |
| FUTA | For 2026, pay 6.0% of the first $7,000 per employee, less a credit of up to 5.4%; file Form 940 yearly | Pub. 15, sec. 14 |
| Year-end forms | W-2s and 1099-NECs by January 31 or the next business day; e-file if you file 10 or more information returns in total | Pub. 15; W-2/W-3 instructions |
Key numbers and dates
| Item | Amount or date | Year in force | Source |
|---|---|---|---|
| Social Security and Medicare rates | 6.2% and 1.45% each for employee and employer; Medicare has no wage cap | 2026 | IRC 3101, 3111 |
| Social Security wage base | $184,500 | 2026 | Pub. 15; SSA |
| Wage base, announced | $192,300 | 2027 | SSA, 91 FR 67380 |
| Deposit schedule | $50,000 or less in the lookback period (July 1, 2024 to June 30, 2025): monthly; more: semiweekly | 2026 | Pub. 15, sec. 11 |
| Form 941, third quarter | Monday, November 2, 2026; November 10 if all deposits were timely | 2026 | Pub. 509 |
| Form W-2 filing | Monday, February 1, 2027 | 2026 wages | W-2/W-3 instructions |
Source: IRS Publication 15 (each year) and Social Security Administration
Recent and pending changes
- July 4, 2025 (final): Public Law 119-21 raised the reporting threshold for 1099-NEC and most 1099-MISC payments from $600 to $2,000 for payments after 2025, indexed for inflation after 2026 (sec. 70433). Its tip and overtime deductions cover income tax only; FICA still applies.
- October 26, 2026 (final): the Social Security Administration's Federal Register notice set the 2027 wage base at $192,300 and the household employee threshold at $3,100.
- 2023 to 2026: the 6.2%, 1.45% and 0.9% rates and the $200,000 threshold did not change.
Penalties and enforcement
The IRS collects and enforces payroll taxes. Failure-to-deposit tiers do not add together; only the highest applies, and reasonable-cause relief exists.
| Tier | Penalty (percent of the late amount) |
|---|---|
| Deposit 1 to 5 days late | 2% |
| Deposit 6 to 15 days late | 5% |
| Deposit 16 or more days late, or paid with the return instead | 10% |
| Unpaid more than 10 days after the first IRS notice, or on notice and demand | 15% |
| Form 941 filed late | 5% of the unpaid tax per month or part, up to 25% |
| Tax paid late | 0.5% per month or part, up to 25%; 1% after certain IRS notices |
| Trust fund recovery penalty | Equals the unpaid trust fund tax, charged to each responsible person who willfully failed |
| Willful failure to pay over | Felony, up to 5 years |
See our guides on the failure-to-deposit penalty, the trust fund recovery penalty and federal payroll tax deposits.
Official sources
- IRS: Publication 15, Employer's Tax Guide
- Social Security Administration: Contribution and benefit base
- Federal Register: Social Security cost-of-living increase and other determinations for 2027
- IRS: Failure to deposit penalty
- IRS: Trust fund recovery penalty
This page is a plain-language summary. The official source controls if there is any difference.