The Payroll Source CPP Practice Exam

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Which statement about employer matching for FICA taxes is true?

Employer does not match.

Employer matches only OASDI.

Employer matches OASDI and Medicare at the same rates; Additional Medicare Tax not matched.

The main idea is how employer FICA obligations work: the employer must match the employee’s contributions for both parts of FICA—Social Security (OASDI) and Medicare. The matching rates are the same as the employee’s for the regular FICA portions. Social Security is limited by a wage base, so the OASDI portion stops at that cap, while Medicare has no wage cap and continues. There’s also an Additional Medicare Tax of 0.9% that applies to high earners, but this extra tax is only withheld from the employee’s pay and is not matched by the employer.

So, the statement that the employer matches OASDI and Medicare at the same rates, and that the Additional Medicare Tax is not matched, is correct.

Employer matches only up to the wage base.