The employee pays 100% of FICA. The rate employers pay their employees take all government burdens into account. Wage + tax liability + cost of bennies (paid vacations, health insurance, unemployment liability, work comp insurance) = cost of employing someone. Wage rates are adjusted accordingly.
Yes I know about all the not-so-hidden additional costs of having employee, but unless that employee is a independent contractor the employer pays 1/2 the FICA... the employee pays one half and the employer pays the second half and the full amount is added to the employees year end W-2.
The FICA base for 2008 is $102,000. The employer and employee each pay their share of the FICA tax of 6.2% or a maximum of $6,324 from the employee and $6,324 from the employer.... and if self-employed you pay the full 12.4%.
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