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Medicare Wage

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Medicare Wage
Any wage or salary that is subject to the Medicare tax. As the name implies, the Medicare tax is a tax on top of one's income tax and Social Security tax that goes to fund Medicare. Generally speaking, only ordinary wages and salaries are Medicare wages. Tips and bonuses usually are exempt from the tax.


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Albany-area hospital executives say the primary reason their profitability falls short of the national average is the Medicare wage index, which is one of the lowest in the nation.
Because the payments are wages for FICA purposes, they are reportable by the employer as Social Security and Medicare wages on the employee-spouse's Form W-2, as are the Social Security and Medicare taxes withheld.
While HR does this audit, the finance and IT departments need to gather data and compute actual differences in Social Security and Medicare wages and taxes.
 
 
 
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