The Federal Insurance Contributions Act (FICA) includes Social Security and Medicare taxes. These taxes help support retired workers and people with disabilities. Both employees and employers pay a portion of these taxes based on a percentage of taxable wages.
Gusto handles these tax payments if they are withheld from payroll.
Go the IRS website to learn more about the rates.
Social Security tax
Medicare tax
Additional Medicare tax
Employees making over $200,000 a year will have to pay an extra 0.9% in Medicare tax. Employers do not have to match this extra amount, but they do need to withhold it from the employee's pay.
The employee's W-4 elections only impact the Medicare tax they pay, not how much an employer pays.