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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%.

I know what it looks like on paper, with the half & half deal. I spent many years calculating it. The employer will add the 6.2% & cost of other employment expenses when considering employee wage rates. Employees pay for all of their bennies, through a reduced pay rate.

If you're self employed, the spouse or minor child of the business owner are exempt from it, least that's how it used to be. Same with Federal unemployment, the tax paid with the 940.