Field Description - Tax - FICA Income Limit

The FICA Income Limit is the gross earnings cutoff point at which FICA taxes are applicable.

Tips:

• FICA is separated into two tax rates - Regular and Medicare-Only.  The Medicare-Only portion has no earnings limit.

• Some employees with special retirement plans, such as the MSRS, are exempt from the regular FICA tax, but must still pay the Medicare-Only tax.  This is controlled by the Employee FICA Code.

See Also:  Field Description - Tax - FICA Rate, Field Description - Employee FICA Code

Where-Maintained:  Federal & Medicare FICA Tax Table Maintenance (FEDM2 & FEDS2), Federal & Regular FICA Tax Table Maintenance (FEDM & FEDS)

Where-Used:  Tax calculations

Format:  6.2 numeric