Social Security & Medicare (FICA)
FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self- employment. As you work and pay FICA taxes, you earn credits for Social Security benefits.
Both you and OSU pay equally for Social Security and Medicare. Benefits provided by Social Security include old age, survivors, and disability insurance. Medicare benefits include Part A (hospitalization), Part B (medical insurance), and Part D (prescription coverage).
Annual Rates and Limits
Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For current limits and earnings, visit the ssa.gov website.
The ssa.gov website can also assist you with information regarding:
- What you can do online
- Get your social security earnings statement
- Estimate your retirement benefits
- Requesting a social security card
- Finding a local social security office
The medicare.gov website has additional information regarding:
- Medicare billing
- Finding out if you are eligible for Medicare
- Providing an address change
- Getting a replacement card
- Getting forms
If you are still an active employee, you and any covered dependents will continue to be on one of the active employee plans even if you or your spouse have reached age 65 and are covered by Medicare Part A with no charge. You may not want to enroll in Part B while actively employed, because OSU will continue to be the primary payer. Medicare Part B pays very little in this situation and there is a monthly premium cost.