Film Accounting Glossary
FICA
What is FICA?
Also called Social Security and Medicare tax, or payroll tax.
FICA is the U.S. federal payroll tax funding Social Security and Medicare, split between employee and employer, and the employer half is a real budget cost inside the fringe rate.
Social Security applies only up to an annual wage base, so a high-paid crew member's employer FICA stops mid-year while Medicare continues without limit. Fringe estimates that ignore the wage base overstate cost on above-the-line salaries.
Example
Employer FICA is 6.2% for Social Security up to the annual wage base plus 1.45% Medicare with no ceiling. A crew member at $1,500 a week crosses the wage base late in the year, so the Social Security half stops and only Medicare continues.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Inside the fringe rate on every labor line. Fringe estimates that ignore the wage base overstate cost on high above-the-line salaries.
Common mistake
Applying a flat FICA percentage across a whole year of high salaries. The Social Security portion stops at the annual wage base, so the estimate overstates cost.
Related questions
- Who pays FICA on a film production?
- Both sides. The employee half is withheld from wages and the employer half is an additional cost that sits inside the fringe rate.
- Does FICA stop once wages reach a certain level?
- The Social Security portion does, at the annual wage base. The Medicare portion continues on all wages with no ceiling.