FICA tax is composed of two components - old age, survivor and disability insurance (OASDI, or Social Security) and hospital insurance (HI, or Medicare). The taxes are imposed on both employees and employers (self-employed persons pay both). For 2011 and 2012, the OASDI tax rate on employees was reduced from 6.2% to 4.2%. It is scheduled to return to 6.2% on 1/1/2013, but Congress may extend the temporary reduction again.
For years after 2012, the employee's rate for Medicare tax increases to 2.35% for wages in excess of $200,000 ($250,00 for a joint return or $125,000 for married filing separately).
The federal unemployment tax (FUTA) rate is 6.2% of the first $7,000 of taxable wages. Employers who pay the state unemployment tax receive an offset credit up to 5.4%. The Wisconsin unemployment tax (SUTA) varies widely and is different for each employer.
