FICA Taxation

Course: Income Tax Planning
Lesson 10: Social Security

Student Question:

Do I understand correctly that all FICA paid in case of employment is deductible/ paid pre-tax (by company as well as employee), whereas in case of self-employment only half is deductible?

---

Instructor Response:

Not quite.  Employees do not get a deduction for their FICA share.  Employers do deduct their share of FICA.  

Self-employed pay both shares, but can deduct half from taxable income.

Does that help clarify?  Let me know.