FSM Salary, Wages Tax & Social Security Calculator
Official statutory calculation under Title 54 (Wages and Salaries Tax) and Title 53 (Social Security Act) of the Code of the Federated States of Micronesia (FSMC). Accurately calculates net take-home pay, 6% and 10% tax tiers, 7.5% FSMSSA, and 3% MiCare in US Dollars ($).
Compensation & Payroll Parameters
Certified travel, uniform, or per diem reimbursements.
Effective Net Retention: 79.35% of Gross Earnings
• Wages Tax Scale: 6% up to $11,000/year ($916.67/mo); 10% on gross exceeding $11,000.
• FSMSSA Maximum Earnings Base: Capped at $10,000 per quarter ($40,000 per calendar year).
• MiCare Rate: 3.0% employee deduction matched equally by 3.0% employer contribution.
Statutory Payroll Withholding Structure (FSM National Standard)
| Deduction Component | Employee Share | Employer Share | Statutory Threshold / Ceiling | Administering Agency |
|---|---|---|---|---|
| Wages Tax (Tier 1) | 6.0 % | 0.0 % | First $11,000 / calendar year | FSM CTA (Finance Dept) |
| Wages Tax (Tier 2) | 10.0 % | 0.0 % | All wages exceeding $11,000 | FSM CTA (Finance Dept) |
| FSMSSA Social Security | 7.5 % | 7.5 % | Max $10,000 / quarter ($40k/yr) | FSM Social Security Admin |
| MiCare Health Insurance | 3.0 % | 3.0 % | All gross compensation | MiCare Plan Administration |
Frequently Asked Questions (FAQ) - FSM Wages & Social Security
What is the statutory Wages and Salaries Tax rate in the FSM?
Under Title 54 FSMC Section 112, individual wages are taxed under a progressive two-tier annual scale: 6.0% on the first $11,000 of taxable gross earnings per calendar year, and 10.0% on all earnings exceeding $11,000.
What is the employee FSMSSA Social Security contribution rate?
Under Title 53 FSMC, employees contribute 7.5% of their gross covered earnings up to the quarterly maximum earnings cap ($10,000 per quarter or $40,000 per calendar year), which is matched by a 7.5% employer contribution.
What deduction applies for MiCare health insurance?
Employees enrolled in the MiCare National Health Insurance Plan contribute 3.0% of gross wages through payroll withholding, paired with a mandatory 3.0% employer matching contribution.
Are there personal exemptions or dependent deductions under FSM tax law?
No. The FSM Wages Tax does not feature standard deductions, itemized deductions, or dependent allowances. All gross wages are subject to the two-tier 6% and 10% statutory rates.
How does pay frequency affect tax withholding calculation?
For regular withholding, employers pro-rate the $11,000 6% tax bracket according to the payroll schedule: $916.67 per month or $423.08 per biweekly pay period.
Engr. Muhammad Shahzad
Verified Technical AuthorPrincipal Civil & Systems Software Engineer specializing in Pacific Island statutory fiscal models, computational payroll algorithms, and Title 51/54 FSMC frameworks.
📊 FSM National CTA & Social Security Administration Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (USD) |
|---|---|
| Primary Net / Statutory Payable Amount | $0.00 USD |