Which statement correctly identifies the two components of FICA payroll taxes and their standard employee rates (excluding the Additional Medicare Tax)?

• A. OASDI 6.2% only; Medicare 1.45% but not applicable
• B. OASDI (Social Security) 6.2% and Medicare 1.45%; total 7.65%; employer matches the same amounts.
• C. OASDI 6.2% and Medicare 1.45% with no employer match
• D. OASDI 6.2% and Medicare 1.45%; total 7.65%; employer pays instead of withholding

Answer: (B)

FICA taxes consist of two parts: OASDI (Social Security) and Medicare. For the employee, the standard rates are 6.2% for OASDI and 1.45% for Medicare, which together total 7.65%. The employer mirrors these same amounts, contributing the same 6.2% and 1.45% on behalf of the employee. The Additional Medicare Tax is not part of this question, so it’s excluded from the discussion.

This combination—OASDI 6.2% and Medicare 1.45% for the employee, totaling 7.65%, with the employer matching those exact amounts—is why the statement is correct. The other options either omit Medicare, omit the employer match, or imply the employer pays instead of withholding, which doesn’t reflect how FICA is actually shared between employee withholding and employer contribution.