This FICA checklist for new employers builds on the overview. Withholding is half the job; the payroll tax deposit rules decide when the money must reach the IRS. Our federal tax calendar lists the dates.
What the law requires
| Requirement | Plain-English meaning | Source |
|---|---|---|
| Both shares | Withhold 6.2% Social Security from the employee, up to the wage base, plus 1.45% Medicare, and pay a matching employer amount | IRC 3101, 3111 |
| Additional Medicare Tax | Once wages pass $200,000, withhold 0.9%; the employer does not match | IRC 3102(f) |
| Deposits | Electronic transfer, monthly or semiweekly; next business day at $100,000 | Pub. 15 section 11 |
| Returns | Form 941 quarterly; Form 940 yearly for FUTA (6.0% of the first $7,000, credit up to 5.4%) | Pub. 15 sections 12, 14 |
| Records | Keep employment tax records at least 4 years; see our record retention guide | IRS |
Amounts and dates at a glance
| Item | Amount or date | Year |
|---|---|---|
| Social Security wage base | $184,500; $192,300 announced | 2026; 2027 |
| Deposit schedule | Monthly when the lookback shows $50,000 or less; semiweekly when it shows more | Lookback July 1, 2024 to June 30, 2025 |
| Form 941 due | April 30; July 31; November 2 (October 31 is a Saturday) | 2026 |
| Form W-2 and W-3 due | Monday, February 1, 2027 | 2026 wages |
| Information-return threshold | $2,000, indexed after 2026 | 2026 |
| Trust fund penalty appeal | 60 days (75 outside the U.S.) | October 2026 |
Source: IRS Publication 15; Federal Register 2026-21796
Recent and pending changes
- October 26, 2026 (final): the Federal Register published SSA's 2027 figures: wage base $192,300, household threshold $3,100.
- July 4, 2025 law (final): for payments after 2025, the reporting threshold went from $600 up to $2,000. Tip and overtime income-tax deductions do not remove FICA.
The named checklist: a FICA checklist for new employers
The Two-Clock Payroll Pass, one clock for deposits and one for returns:
- Classify each worker with the right-to-control test.
- For visa holders and posted workers, confirm status and any certificate of coverage before the first payroll.
- Set withholding at 6.2%, 1.45% and the extra 0.9% above $200,000.
- Deposit clock: choose monthly or semiweekly from the lookback; watch the $100,000 rule.
- Return clock: diary Form 941, Form 940 and the February 1, 2027 W-2 date.
- Each quarter, check that line 16 or Schedule B shows liabilities, not deposits.
- Name who pays over withheld taxes, and pay them before other creditors.
Common mistakes
- Filing Form 941 and assuming deposits are done.
- Putting deposits on line 16 in place of liabilities.
- Paying other creditors first.
- Assuming the tip and overtime deductions cancel FICA.
When to bring in an attorney
- The IRS proposes a trust fund penalty against you personally.
- IRS Criminal Investigation contacts you about payroll taxes.
- A payroll tax debt follows a business sale or closing.
How we can help
We handle the U.S. tax, payroll and accounting side, alongside your attorney, Canadian CPA or Indian CA. See the U.S. employer checklist, payroll and employer compliance and bookkeeping and accounting.
Frequently asked questions
Does an employer owe a match on the Additional Medicare Tax?
No. The employer withholds 0.9% above $200,000. The employee's final tax uses $250,000 joint, $125,000 separate or $200,000 otherwise.
Does the trust fund penalty reach only owners?
No. It reaches any responsible person who willfully does not pay over the tax. Some unpaid board members serving tax-exempt groups are excluded.
Do Illinois rules replace these?
No. Illinois withholding and unemployment insurance sit beside FICA; see our Illinois payroll guide.
Is the Form 1099-NEC threshold still $600?
No. For payments after 2025 it is $2,000, indexed for inflation after 2026.
Official sources
- IRS: Publication 15, Employer's Tax Guide (2026)
- IRS: Publication 509, Tax Calendars (2026)
- Federal Register: SSA cost-of-living increase and other determinations for 2027
- IRS: Failure to deposit penalty
- IRS: Employment taxes and the trust fund recovery penalty
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.