Old-Age, Survivors, and Disability Insurance (OASDI) is the official statutory name for the federal Social Security program. Funded through a 6.2% employee payroll withholding matched by an equal 6.2% employer contribution under the Federal Insurance Contributions Act (FICA), OASDI pays monthly benefits to eligible retirees, disabled workers and surviving dependents.
OASDI at a glance: 2026 quick facts
- Official name: Old-Age, Survivors, and Disability Insurance (commonly called Social Security).
- Employee tax rate: 6.2% of gross wages.
- Employer tax rate: 6.2% (a dollar-for-dollar match).
- 2026 taxable wage base: $184,500 (up from $176,100 in 2025).
- Maximum annual employee contribution: $11,439.
- On a pay stub: often shown as “Fed OASDI/EE” (employee) or simply “OASDI” / “Social Security.”
- Governing law: FICA (employees and employers); SECA (self-employed).
- 2026 credit threshold: $1,890 in covered earnings per credit, up to 4 credits per year.
What is OASDI?
OASDI and Social Security refer to the same program. OASDI is the term used in federal statutes and payroll systems, while Social Security is the name used in everyday conversation.
The SSA administers OASDI through two trust funds. The Old-Age and Survivors Insurance (OASI) trust fund pays retirement and survivor benefits. The Disability Insurance (DI) trust fund pays disability benefits. Both are funded by the 6.2% OASDI payroll tax withheld from wages, matched dollar-for-dollar by employers, along with interest earned on trust fund reserves.
OASDI dates back to the Social Security Act of 1935, though payroll tax collection under the program didn’t begin until January 1937.
What does “Fed OASDI/EE” mean on a pay stub?
“Fed OASDI/EE” is a common pay stub abbreviation for Federal Old-Age, Survivors, and Disability Insurance — Employee share. It represents the 6.2% of gross wages withheld from an employee’s paycheck for Social Security. The “/EE” suffix simply marks it as the employee’s portion, since the employer’s matching 6.2% is paid separately and typically doesn’t appear as a line item on the employee’s own pay stub.
Because payroll systems label this line differently, an employee might see any of the following for the exact same deduction:
- Fed OASDI/EE
- OASDI
- Social Security Tax
- SS Tax
- SS EE
All five refer to the same 6.2% withholding.
OASDI vs. Social Security vs. FICA vs. Medicare
These four terms get used interchangeably, but each describes a different layer of the same system.
Table: How OASDI relates to FICA, Social Security, and Medicare
| Term | What it is | 2026 rate |
|---|---|---|
| OASDI | The official program name for old-age, survivor, and disability benefits | 6.2% employee + 6.2% employer |
| Social Security | The common (non-technical) name for OASDI | Same as OASDI |
| FICA | The federal law that authorizes both OASDI and Medicare payroll taxes | 15.3% combined (7.65% employee + 7.65% employer) |
| Medicare (HI) | The other half of FICA, funding hospital insurance for seniors and qualifying disabled individuals | 1.45% employee + 1.45% employer, no wage cap |
In short: FICA is the law, OASDI and Medicare are the two taxes it authorizes, and Social Security is simply the everyday name for OASDI.
How OASDI tax works in 2026
Employers withhold 6.2% of an employee’s gross wages for OASDI and contribute a matching 6.2%, for a combined 12.4%. That withholding applies only up to the annual Social Security wage base, which the SSA increased to $184,500 for 2026, up from $176,100 in 2025. Once an employee’s year-to-date wages cross that threshold, OASDI withholding stops for the rest of the calendar year, though Medicare withholding continues on every dollar earned.
The wage base is one of several OASDI-related figures the SSA adjusts each year in line with the National Average Wage Index. For 2026, the SSA also raised the earnings needed for a work credit to $1,890, up from $1,810 in 2025, and set the 2026 Social Security COLA at 2.8%.
OASDI for the self-employed (SECA)
Self-employed workers pay OASDI under the Self-Employment Contributions Act (SECA) rather than FICA. Since there’s no employer to split the cost with, they owe the full 12.4% themselves on net self-employment earnings up to the $184,500 wage base, though they can deduct the employer-equivalent half (6.2%) on their federal income tax return. Self-employed individuals earning less than $400 in net earnings for the year are not required to pay OASDI tax.
OASDI eligibility and benefits
Eligibility for OASDI benefits depends on “credits” (formally called quarters of coverage), which workers earn based on annual covered earnings. In 2026, a worker earns one credit for every $1,890 in covered wages, up to a maximum of four credits per year ($7,560 total). Most people need 40 credits, roughly 10 years of covered work, to qualify for retirement benefits. Survivor and disability benefits can require fewer credits depending on the worker’s age.
Table: OASDI benefit types and who qualifies
| Benefit type | Who qualifies | How the benefit is calculated |
|---|---|---|
| Retirement | Workers with 40 credits who are at least 62 years old | Based on the worker’s highest 35 years of indexed earnings |
| Disability | Workers who meet SSA’s recent-work and duration-of-work tests | Based on the worker’s average lifetime earnings before disability |
| Survivors | Spouses, children, or dependents of a worker who was insured at death | A percentage of the deceased worker’s benefit amount |
Full, unreduced retirement benefits become available at an employee’s full retirement age (FRA), which ranges from 66 to 67 depending on birth year. Reduced benefits are available as early as age 62.
Who is exempt from OASDI taxes?
Most US workers, employers, and self-employed individuals are required to pay OASDI tax. A few groups qualify for exemptions:
- Certain religious groups. Members of recognized religious sects that oppose Social Security benefits, such as some Amish and Mennonite communities, can apply for an exemption using IRS Form 4029. Doing so also waives future eligibility for OASDI benefits.
- Self-employed workers earning under $400 per year. Net earnings below this threshold aren’t subject to SECA tax.
- Certain state and local government employees. Public employees covered by a qualifying alternative pension plan may be exempt.
- Some nonresident and nonimmigrant visa holders. This includes certain foreign government employees, international students, and researchers on qualifying visas, along with foreign crew members working under specific international agreements.
2026 OASDI updates to know
- Wage base increase: The taxable maximum rose from $176,100 to $184,500, a 4.8% increase, driven by national average wage growth rather than the separate 2.8% cost-of-living adjustment applied to benefits.
- Work credit threshold: Rose to $1,890 per credit (from $1,810), meaning $7,560 in covered earnings secures the maximum 4 credits for the year.
- OBBBA overtime and tip deductions: Under the One Big Beautiful Bill Act, new federal income tax deductions apply to qualified tips (up to $25,000) and qualified overtime pay (up to $12,500). These amounts still count as covered wages for OASDI purposes, meaning employers must continue withholding and matching the full 6.2% on them even though they may be excluded from federal income tax.
Let Fingercheck handle your OASDI tax compliance
Between tracking the annual wage base, stopping withholding at exactly the right dollar, and keeping pace with new legislative updates, OASDI compliance has a lot of moving parts, especially for a workforce with varying pay cycles or high earners who cross the cap mid-year.
Fingercheck’s all-in-one payroll software automatically tracks year-to-date wages in real time, halts OASDI withholding the moment an employee reaches the annual maximum, and handles the employer match on every pay cycle without manual configuration.
Use our free Payroll Tax Calculator to estimate your current liability, or take a self-guided tour of the platform to see how Fingercheck simplifies payroll tax compliance for your business.
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Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.
