The provisions of the United States Old Age, Survivors, and Disability Insurance Tax (OASDI) and the Hospitalization Insurance Tax (Medicare), commonly known as FICA or social security, are applicable in Puerto Rico to employers and employees in the same manner as in the continental United States.
FICA Tax Rate
The tax rate is 7.65% for each employer and employee of which 6.20% accounts for OASDI and 1.45% for Medicare. The employee tax rate for OASDI is 6.2% (amount withheld). The maximum social security wage base for OASDI for the year 2015 is $118,500. There is no limit to the amount of earnings subject to the Medicare earnings. Self-employed taxpayers are subject to the total 15.3% tax rate comprised of 12.4% for OASDI and 2.9% for Medicare. The self-employment tax rate for self-employment income earned is 15.3% (12.4% for Social Security and 2.9% for Medicare).
The employee tax must be withheld by the employer from the employees’ wages and is paid using the Electronic Federal Tax Payment System (EFTPS). Generally an employer is a monthly depositor for the entire calendar year if the aggregate amount of employment taxes reported for the look-back period is $50,000 or less. Under the monthly deposit schedule, FICA deposit is due by the 15th day of the following month. If it is greater than $50,000 and payroll period date is Saturday, Sunday, Monday or Tuesday, then a deposit must be made on or before the following Friday. If payroll period date is Wednesday, Thursday or Friday, then a deposit must be made on or before the following Wednesday (semiweekly depositor). FICA deposits of $100,000 or more accumulated on any day during a monthly or semiweekly deposit period are due the next banking day.
