Every person working in the U.S. as an employee must have FICA taxes withheld from every paycheck by law. FICA taxes include taxes for both Social Security and Medicare. The FICA tax is shared by employees and employers, so one half of the tax is deducted from employee paychecks each payday.

Is FICA a mandatory deduction on a paycheck?

Some mandatory payroll tax deductions that employers are required by law to withhold from an employee’s paycheck include: Social Security & Medicare taxes – also known as FICA taxes.

Is it illegal to not pay FICA?

If you don’t withhold income and FICA taxes as you are required to do, or if you withhold the taxes but don’t pay them to the IRS, the IRS is authorized to penalize you up to 100 percent of the taxes owing. If you willfully submit a false IRS form you could be fined and go to jail for up to one year.

What was the FICA tax rate in 2011?

Special 2011 FICA Tax Rate due to Payroll Tax Break. As part of the deal Obama forged to extend unemployment benefits at the end of 2010, not only did tax rates stay the same across the board, but he also enacted what amounts to a substantial stimulus package by way of reducing the FICA rate by 2% to 4.2% for employees.

Is the FICA tax on your paycheck?

Anyone that has inspected their paychecks for the myriad taxes and deductions from their paychecks has surely noticed the FICA Tax line on there. The Federal Insurance Contributions Act (FICA) tax is a federal tax on both employees and employers to fund Social Security and Medicare.

Is the 6.2% tax not withheld for FICA?

The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant. An an employer did not withhold the 6.2% for FICA for 3 years for an employee.

When do Americans have to file their taxes for 2011?

Because tax year 2011 is still under way — meaning that Americans’ personal financial situations will be subject to countless factors between now and Dec. 31 — it’s impossible to know for sure how much of a benefit the average American family will see when they finally file tax forms next spring.