If you have seen FICA or OASDI and HI deductions on your check stub and did not understand why these deductions were there, here is the explanation.

FICA is another name for Social Security. Most everyone is subject to the 7.65% social security tax, which is matched by an equal 7.65% contribution from your employer.

FICA is divided into two portions: OASDI (6.2%) and HI (1.45%). OASDI stands for "Old Age Survivors & Disability Insurance." The HI is "Health I nsurance" or Medicare.

There is a limit to the amount of wages subject to the OASDI portion of FICA. For more information about this limit and other withholding questions, view this IRS Document.

There is NO limit to the amount of wages subject to the Medicare portion of FICA.

Would you like to know more about Social Security? Need to apply for a social security number or obtain a new card? Check out the United States Social Security Administration's website at Social Security Online.