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For employees, FICA tax rates for 2015 were 7.65% on the first $118,500 of each employee’s annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit.
For employers, FICA tax rates for 2015 were also 7.65% on the first $118,500 of each employee’s annual earnings.
The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee’s annual earnings. Only $15,100 of the gross pay amount for the December 27, 2015, pay period was owed to employees who were still under the annual limit.
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