There is a line on every pay stub that quietly takes a bite – FICA. It does not make noise. It does not ask permission. It just shows up, like clockwork, and takes its cut.
Here’s the deal:
FICA stands for Federal Insurance Contributions Act. Sounds fancy, but it’s just the tax that funds Social Security and Medicare.
Here’s how it breaks down:
- 6.2% of your paycheck goes to Social Security
- 1.45% goes to Medicare
- Your employer matches that, so 15.3% goes in total
- If you are self-employed? You pay the whole thing (yep, all 15.3%)
You are not just tossing money into a pit. These taxes fund your retirement and health coverage later in life. So even if it stings now, it’s meant to be for your future.
But here’s the catch:
Most business owners and freelancers overpay on this stuff without even realizing it.
If you are not being strategic, you might be leaving thousands on the table every year.
Want to keep more of your hard-earned money?
Book a quick call and we will show you where your money is leaking, and how to plug the gaps.
Let’s make sure you are not overpaying. START HERE
