FICA Tax Rates 2026 and Employer Payroll Rules

FICA tax rates 2026 are easy to state. The Federal Insurance Contributions Act (FICA) makes an employer withhold Social Security and Medicare tax from wages and add a matching amount. The IRS collects it; the Social Security Administration (SSA) sets the wage base. This page is for owners with Canada or India ties who run U.S. payroll.

FICA tax rates 2026 in seven slides

Slide show: FICA in seven slides

What it is
FICA funds Social Security (6.2%) and Medicare (1.45%). Employee and employer each pay.
Who it affects
Every employer paying wages. A self-employed person owes both halves: 15.3% applied to 92.35% of net earnings.
The rule
Hold back the employee share, add a matching employer share, then deposit both electronically.
The number
Wage base $184,500 in 2026 and $192,300 in 2027. Medicare has no cap; 0.9% extra is withheld above $200,000.
The deadline
Form 941 is due April 30, July 31, October 31 and January 31, or the next business day. The third-quarter 2026 return is due November 2, 2026.
The penalty
The late-deposit penalty is 2%, 5%, 10% or 15%. A responsible person can owe the unpaid trust fund taxes.
The tip
Monthly depositors fill in Form 941 line 16; semiweekly depositors use Schedule B. Both must show liabilities, not deposits.

Who the law covers

Group	Treatment
Any employer paying wages, no minimum headcount	Withholds the employee's share and pays a matching employer share
Corporate officers who work in the business	Employees of the corporation
Sole proprietors, partners and LLC members taxed as such	Not employees; usually owe self-employment tax when net earnings reach $400
Working S corporation owner	Wages carry employment tax; the IRS can reclassify distributions as wages
Household employee	FICA once cash wages reach $3,000 in 2026 ($3,100 in 2027)

What it means for a foreign-owned or cross-border business

Situation	What the law says	What to check
Owner working in a U.S. LLC taxed as a sole proprietorship or partnership	Not an employee; self-employment tax	Residency; see our foreign-owned LLC guide
Working officer of a U.S. subsidiary of a Canadian or Indian parent	An employee of the corporation	Wages through payroll
Employee on a work visa or with a green card	Our guide notes FICA generally applies to U.S. work, with narrow exceptions	Visa category; foreign workers guide
Canadian employee posted to your U.S. site	The U.S.-Canada agreement, in force since August 1, 1984, can keep a posted worker in the Canada Pension Plan with a certificate; a local hire pays FICA	Certificate before payroll; totalization
Employee from India	SSA's list of agreements in force does not include India	Provident fund questions go to your Indian CA
Nonresident paid for work done wholly outside the U.S.	Not U.S. wages	Where the work happened; foreign payee rules

Where to go next

FICA rules and checklist has the numbers, changes and the Two-Clock Payroll Pass. Related: the Internal Revenue Code, OSHA and the Illinois Wage Payment and Collection Act.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.

Please read: general information only

This page gives general information and education about a law that may affect businesses. It is not legal, tax, accounting or other professional advice and it is not a substitute for advice from a licensed attorney or CPA who knows your facts. Reading it does not create an attorney-client, CPA-client or any other professional relationship with CPA Tax Payroll and Accounting Corp. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm: it does not give legal advice or represent anyone in legal matters.

Laws, thresholds, rates and penalties change often, and courts and agencies change how they apply them. We checked the figures against the official source on the date shown (last reviewed October 27, 2026), but we do not promise that this page is complete, current or free of errors, and we do not update it the moment a law changes. Whether a law applies to you depends on facts we do not have. Examples are invented and for illustration only.

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FICA Tax Rates 2026: Employer Rules for Cross-Border Owners

FICA tax rates 2026 in seven slides

What it is

Who it affects

The rule

The number

The deadline

The penalty

The tip

Who the law covers

What it means for a foreign-owned or cross-border business

Where to go next

Official sources

Related guides

FICA Payroll Tax Deposit Rules and Employer Checklist

Social Security and Medicare Taxes for Foreign Workers: FICA Rules

US Canada Totalization Agreement: Social Security, CPP and Certificates

US Employer Compliance Checklist: Registrations, Payroll Taxes and I-9 (2026)

Hiring US Employees from Abroad: Payroll, Work Authorization and Visa Basics

Payroll and Employer Compliance Services for Illinois Employers