New Jersey FICA Calculator

New Jersey FICA Calculator: Estimate Your Social Security & Medicare Taxes

Ever looked at your New Jersey paycheck, seen that deduction labeled “FICA,” and wondered where that money actually goes? You see your gross pay—the number that made you accept the job—and then the net pay, the amount that actually hits your bank account. The difference can sometimes feel like a magic trick. But it’s not magic; it’s taxes.

Specifically, a big chunk of that difference is the Federal Insurance Contributions Act (FICA) tax. It’s not a New Jersey state tax, but a federal one that every wage earner in the U.S. pays. Think of it as a mandatory savings plan for your future self, funding two of the most critical social programs in the nation: Social Security and Medicare.

This guide will pull back the curtain on FICA taxes for every worker in the Garden State. We’ll break down what it is, how it’s calculated in 2025, and what it means for your financial future. No confusing jargon, just straight answers.

What Exactly is FICA? A Tale of Two Taxes

FICA isn’t a single tax. It’s a bundle of two separate, yet equally important, federal taxes that serve as the bedrock of America’s social safety net.

Social Security: Your Future Retirement Fund

Imagine you’re putting a few bricks aside every payday to build your future retirement home. That’s essentially what the Social Security portion of FICA is. It’s a 6.2% tax on your earnings, but not forever. In 2025, this tax only applies to the first $176,100 of your income. This is known as the “wage base limit.” If you earn more than that, you stop paying the Social Security tax for the rest of the year.

This money goes into a massive trust fund that pays for:

• Retirement Benefits: Monthly income for when you retire.
• Disability Benefits: Support if you become unable to work due to a medical condition.
• Survivor Benefits: Payments to your spouse or dependents if you pass away.

According to the Social Security Administration, about 180 million people work and pay Social Security taxes, and about 67 million people receive monthly Social Security benefits. It’s a vast, inter-generational system where today’s workers fund the benefits for today’s retirees and disabled individuals.

Medicare: Your Healthcare Safety Net

The second part of FICA is the Medicare tax. This is a 1.45% tax on all of your earnings. Unlike Social Security, there is no income cap. Whether you make $50,000 or $5,000,000 in New Jersey, you pay the 1.45% Medicare tax on every single dollar.

This tax is your contribution to the nation’s health insurance program for:

• People aged 65 or older.
• Younger people with certain disabilities.
• People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant).

It’s the financial engine that powers Medicare Part A (Hospital Insurance), Part B (Medical Insurance), and Part D (prescription drug coverage).

How to Calculate Your FICA Tax in New Jersey

Now for the math. The calculation is straightforward, but it has a couple of key steps. Your employer handles the withholding, but understanding the formula empowers you to check your paystub for accuracy and plan your finances.

The FICA Tax Rates:

• Social Security: 6.2% on the first $176,100 of earnings.
• Medicare: 1.45% on all earnings.

Let’s run an example. Say you’re a marketing manager in Morristown with a gross monthly salary of $8,000.

1. Social Security Calculation:
   • $8,000 (monthly pay) x 0.062 (6.2%) = $496
2. Medicare Calculation:
   • $8,000 (monthly pay) x 0.0145 (1.45%) = $116
3. Total FICA Withholding for the Month:
   • $496 + $116 = $612

This $612 is what you’d see deducted from your monthly paycheck for FICA.

The Social Security “Ceiling”

What happens if you’re a high earner? Let’s say you’re a surgeon in Short Hills earning $30,000 a month. Your annual income is $360,000.

• You will pay the 6.2% Social Security tax only on the first $176,100. The maximum Social Security tax anyone will pay in 2025 is $10,918.20 ($176,100 x 0.062).
• Once your year-to-date earnings hit that ceiling, the Social Security deductions on your paycheck will stop.
• However, the 1.45% Medicare tax continues on every dollar you earn, all year long.

The Plot Twist: The Additional Medicare Tax

For high-income earners, there’s one more layer to the FICA story: the Additional Medicare Tax. This is an extra 0.9% tax that kicks in once your income crosses a certain threshold. It’s important to note that this additional tax is only paid by the employee; there is no employer match.

The income thresholds depend on your tax filing status:

• Single or Head of Household: $200,000
• Married Filing Jointly: $250,000
• Married Filing Separately: $125,000

Example: You are a single filer earning $240,000 a year.

• You pay the standard 1.45% Medicare tax on your entire $240,000 salary.
• You also pay the Additional Medicare Tax of 0.9% on the amount over the $200,000 threshold.
  • $240,000 – $200,000 = $40,000
  • $40,000 x 0.009 = $360 in Additional Medicare Tax for the year.

Your employer is required to start withholding this extra tax once your pay for the year exceeds $200,000.

Decoding Your New Jersey Paystub

When you get your paystub, you won’t see a single line item for “FICA.” Instead, you’ll likely see it broken down. Look for these common abbreviations:

• OASDI: Old-Age, Survivors, and Disability Insurance. This is your Social Security tax.
• Medicare or Med FICA: This is your Medicare tax.
• Fed Med/EE: Federal Medicare/Employee.

Seeing these line items gives you a clear picture of exactly how much you’re contributing to each program every pay period.

FICA vs. Other New Jersey Payroll Taxes

It’s easy to lump all paycheck deductions together, but FICA is distinct from New Jersey’s state-level taxes. When you look at your paystub, you’ll also see deductions for:

• NJ State Income Tax: A progressive tax with rates from 1.4% to 10.75%.
• NJ SDI (State Disability Insurance): Funds temporary disability benefits.
• NJ FLI (Family Leave Insurance): Provides benefits for bonding with a new child or caring for a sick family member.
• NJ UI/HC/WF: Unemployment Insurance/Health Care/Workforce Development.

While FICA is a federal program for your long-term future (retirement and healthcare), these state taxes fund more immediate, state-run safety nets.

What About Self-Employed Workers in NJ?

If you’re a freelancer in Jersey City or run your own business from your home in Cherry Hill, FICA works a bit differently. You are responsible for paying both the employee and the employer portions. This is known as the Self-Employment (SE) Tax.

The 2025 Self-Employment Tax Rates:

• Social Security: 12.4% (6.2% employee + 6.2% employer) on the first $176,100 of net earnings.
• Medicare: 2.9% (1.45% employee + 1.45% employer) on all net earnings.

While the combined rate of 15.3% seems high, you get to deduct the “employer” half of your SE tax on your income tax return, which provides some relief. Self-employed individuals typically pay these taxes quarterly to the IRS as estimated tax payments.

Why FICA Matters: More Than Just a Tax

It’s easy to view FICA as just another deduction shrinking your paycheck. But it’s a foundational promise. It’s the assurance that after a lifetime of work, you’ll have an income stream in retirement. It’s the peace of mind that you and your parents will have access to hospital care through Medicare.

The money you pay into FICA today doesn’t just sit in an account with your name on it. It’s used to pay benefits to millions of Americans right now. In turn, the system relies on future generations of workers to fund your benefits when you need them. It’s a powerful cycle of social insurance that has been a pillar of American economic stability for decades.

Frequently Asked Questions (FAQ)

Q1: Is FICA a state tax?

No, FICA is a federal tax. It applies to workers in all 50 states, including New Jersey.

Q2: Do I pay FICA on bonuses?

Yes. Bonuses, commissions, and tips are considered supplemental wages and are subject to FICA taxes, just like your regular salary.

Q3: What happens if I have two jobs in New Jersey?

If your total income from both jobs is under the $176,100 Social Security wage base, each employer will withhold FICA taxes as usual. If your combined income exceeds the limit, you might overpay Social Security tax. If this happens, you can claim a refund for the overpaid amount when you file your annual federal income tax return.

Q4: Can I be exempt from FICA?

Most workers cannot be exempt. However, there are some rare exceptions, such as for certain student workers, some non-resident aliens, and members of specific religious groups who have a conscientious objection to the insurance.

Q5: Where can I see how much I’ve paid into Social Security?

You can create an account on the official Social Security Administration website (SSA.gov). Your personal account will show your complete earnings history and an estimate of your future retirement benefits.