Glossary · Payroll & taxes
FICA (Federal Insurance Contributions Act)
Federal payroll tax funding Social Security (6.2% each on employer and employee, up to the wage base) and Medicare (1.45% each, no wage cap).
All terms
Entravia Editorial
FICA splits Social Security and Medicare obligations evenly between employer and employee. An additional 0.9% Medicare surtax applies to employee wages over $200,000 (employee-only).
Under a PEO arrangement, the PEO typically files FICA under its own FEIN. Mid-year transitions into a PEO can create wage-base reset issues; CPEOs receive specific statutory treatment that mitigates this.
Related terms
- CPEO (Certified PEO)A PEO certified by the IRS under the Small Business Efficiency Act, providing client businesses explicit federal employment-tax liability assurance.
- FUTA (Federal Unemployment Tax Act)Federal payroll tax of 6% on the first $7,000 of each employee's wages, partially offset by SUI credits.
Trusted by operators across the PEO ecosystem
Ready when you are
See Entravia handle a real intake.
Walk through a live submission, structured data, and parallel quote distribution — in about 15 minutes.