Medicare Tax

Medicare Tax

A certain percentage of wages or salaries used to finance Medicare. Employees are required to contribute 1.45% of their income to pay for Medicare, with no income limit. Employers are required to make matching contributions for each employee.
References in periodicals archive ?
SOCIAL SECURITY AND MEDICARE--An employer generally must withhold Social Security and Medicare tax (FICA).
Medicare tax is greater than zero; Medicare wages and tips are equal to zero.
Features report functions, print functions, and pay stub functions; Easily calculates differential pay; Prints miscellaneous checks and also payroll calculation checks; Prints payroll checks on blank computer checks or preprinted checks; Automatically calculates Federal Withholding Tax, Social Security, Medicare Tax and Employer Unemployment Taxes; Includes built-in tax tables for all 50 states and the District of Columbia; Generates and maintains payrolls for multiple firms, and does it at the same time; Prints Tax Forms 940, 941, W-2 and W-3; Backs multiple accounts at no extra charge; Backs network access.
The additional Medicare tax was enacted as part of 2010's health care reform legislation.
It also includes 2014 tax rate on Social Security Tax, Medicare Tax and other tax updates.
9 percent Medicare tax applies to FICA wages and self-employment income exceeding that same threshold.
An Additional Medicare Tax, resulting in an increase of 0.
There is good news for those who are deemed to be "Real Estate Professionals" and who materially participate in real estate activities: they will not be subject to the new Medicare Tax on their rental real estate income and will be able to deduct net losses from real estate against any other type of income.
8 percent Medicare tax on passive income, such as capital gains and dividends, will affect individuals with annual incomes above $400,000 and couples who earn more than $450,000.
Two of the most important changes, which affect both apartment firms and employees, have to do with the Medicare tax rate and applicability.
NEW YORK: There are few certainties for year-end tax planning this year, but if you're a wealthy investor there is one sure thing -- the new Medicare tax, slated to begin in 2013.
Implications and Potential Penalty: Employers will not be liable for any additional Medicare tax that they fail to withhold and that the employee later pays.