Effective January 1, 2011, the Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) portion of the Federal Insurance Contributions Act (FICA) tax rate has decreased from 6.2% to 4.2% on the first $106,800 of employee earnings. The Medicare Hospital Insurance (MED) portion of the FICA tax rate remains the same as last year at 1.45% of all earnings.
This represents an employee FICA reduction of 2.0% for calendar year 2011. University employees can expect to see this reduction in the FICA rate beginning with their first paycheck issued on January 5, 2011.
The employer’s portion of OASDI will remain at 6.2%. The total FICA charges to department budgets will remain at 7.65%.
