How FICA and Self-Employment Tax Differ
Same programs, different collection paths
How FICA and Self-Employment Tax Differ
Social Security and Medicare need contributions whether you earn wages or self-employment income. Employees see FICA on a pay stub. Self-employed people generally pay SECA through Schedule SE. Mixing the two worksheets is a common source of double counting—or underpayment planning mistakes.
Employee FICA in 2026
Employees typically pay 6.2% Social Security on wages up to the $184,500 wage base and 1.45% Medicare on all wages. An Additional 0.9% Medicare tax can apply above filing-status thresholds. Employers also pay a matching Social Security and Medicare portion (not Additional Medicare).
Self-Employment Tax (SECA)
Self-employed people generally cover both “halves” through a 12.4% Social Security rate and 2.9% Medicare rate on net earnings after the 92.35% factor. The same wage base caps Social Security. W-2 Social Security wages consume that base before SE Social Security applies in a simplified model.
Key Takeaways
- FICA is the employee wage path; SECA is the self-employment path
- Both use the 2026 Social Security wage base of $184,500
- Neither worksheet replaces federal income tax brackets
- People with both W-2 and 1099 income must avoid double-counting the wage base