Most employees and employers each pay Social Security and Medicare taxes on Social Security and Medicare covered wages. These taxes comprise FICA (Federal Insurance Contributions Act).
Social Security Portion of FICA
- The Social Security portion of FICA is 6.2% of the maximum taxable wages.
- If you reach the maximum payment, you do not pay any more Social Security tax until the next calendar year.
- The maximum taxable wage for Social Security is adjusted each year. Visit Social Security Administration site to learn more about your Social Security Contribution and Benefit Base.
Medicare Portion of FICA
- The Medicare portion of FICA is 1.45% for wages up to 200,000 and 2.35% for wages above $200,000.
- There is no cap on wages for the Medicare portion of FICA.
FICA Refunds
Find out about FICA Refunds as a result of the Doctors Council v. NYCERS court decision.
Exemption from Social Security or Medicare Taxes
Under certain circumstances, New York City employees may be exempt from Social Security and/or Medicare taxes. If you fall into one of the following categories, you may be exempt from Social Security or Medicare taxes:
- Not a pension member and contribute at least 7.5% or more to a single defined contribution plan, such as the Deferred Compensation 401(k) or 457 plans, or a 403(b) Tax Deferred Annuity (TDA). Get more information about Social Security & Medicare Tax Exemptions for Non-Members of Pension Plans.
- City pension plan member in 1957 electing not to have Social Security
- Half time CUNY student working at CUNY
- Non-resident student or teacher admitted to the US under certain visas
- Foster Grandparent working for the Department of Aging
- Election Inspector/Worker earning less than $2,000 from the Board of Elections in 2021
- Beneficiary of a deceased employee receiving payment after the calendar year of the employee's death
- Temporary emergency relief employee.
Learn more about Social Security & Medicare Tax Exemptions for Other NYC Employees.
The Social Security Protection Act of 2004 requires newly hired public employees to sign a "Statement Concerning Your Employment in a Job Not Covered by Social Security". Form SSA-1495 explains the potential effects of two provisions in the Social Security law on workers whose earnings are not covered under Social Security.
For more information, Social Security publications, and additional information about exceptions to each provision, are available from Social Security Administration. You may also call toll free 800-772-1213 or contact your local Social Security office.
Social Security Statements
Find out more about your personal Social Security Statement and learn how to access it.
2020 Social Security and Medicare Tax Withholding Rates and LimitsFor 2020, the maximum limit on earnings for withholding of Social Security (old-age, survivors, and disability insurance) tax is $137,700.00. The Social Security tax rate remains at 6.2 percent. The resulting maximum Social Security tax for 2020 is $8,537.40. There is no limit on the amount of earnings subject to Medicare (hospital insurance) tax. The Medicare tax rate applies to all taxable wages and remains at 1.45 percent with the exception of an “additional Medicare tax” assessed against all taxable wages paid in excess of the applicable threshold (see Note). The FICA tax rate, which is the combined Social Security rate of 6.2 percent and the Medicare rate of 1.45 percent, remains 7.65 percent for 2020 (or 8.55 percent for taxable wages paid in excess of the applicable threshold). The information in the following table shows the changes in Social Security withholding limits from 2019 to 2020. There are no changes in Medicare limits.
Note: The Patient Protection and Affordable Care Act signed into law March 23, 2010, created the “additional Medicare tax” that changed Medicare withholding computations effective January 1, 2013. All wages, self-employment income, and other compensation that are subject to regular Medicare tax and are paid in excess of the applicable threshold are subject to the additional Medicare tax. Employers are required to withhold the additional Medicare tax at a 0.9 percent rate on wages and other compensation paid to an employee in excess of $200,000 in a calendar year. There is no employer match for the additional Medicare tax.
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