Who pays the employer's FICA?

A Sole Proprietor or partner in a partnership pays FICA taxes on their business income via Schedule SE.

If the employer is a corporation, the corporation does not pay FICA taxes on its own income.

All employers pay payroll taxes on the wages that the pay their employees. FICA taxes are part of the payroll tax mix.

FICA works out to about 7.5% on a regular employee. Both the employee and the employer pay this amount, for a total of about 15% of the wages being paid in for FICA.

When a person is self employed, either because they own their own business, or they work as an independent contractor, they are required to file schedule C on their taxes. Schedule C determines their profit or loss and any profits are considered income. If the profit is over $400, that person is also required to file schedule SE for self employment taxes. This schedule computes their self employment tax, which is essentially the FICA taxes for that income. It is calculated at 15.3% of net profit so that its the same as getting 7.5% from both the employee and the employer.

You do. Instead of giving you a raise, he has to pay another tax on you. Or you can feel that we each pay our fair share.