Medicare Wages

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.

Medicare Wages

Total wages paid to an employee that are subject to Medicare tax. This amount doesn't include tips, which are reported separately.
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References in periodicals archive ?
* A 0.9% additional Medicare tax, which applies to Medicare wages and self-employment income of $125,000 and up for some individuals and couples;
If a household worker earns cash wages for 2013 of $1,800 or more ($1,900 or more for 20141), these are considered Social Security and Medicare wages, regardless of when they were paid.
31, 2013, and then, on its fourth quarter 2013 Form 941, it may reduce the fourth-quarter wages, tips, and other compensation on line 2; taxable Social Security wages on line 5a (subject to the wage base limitation for the year); and taxable Medicare wages and tips on line 5c, all by the amount of the same-sex spouse benefits treated as wages for the first three quarters of 2013.
T must withhold an additional 0.9% Medicare tax from J's salary beginning with the paycheck in which his annual Medicare wages exceed $200,000.
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.
The amounts are free of income and payroll tax withholding, because they are not included in Box I (wages, tips, or other compensation), Box 3 (Social Security wages, if applicable), or Box 5 (Medicare wages and tips) of Form W-2.
The employer reports the payments as Social Security and Medicare wages and reports the Social Security and Medicare withheld taxes on the employee spouse's Form W-2.
Social Security and Medicare wages and taxes automatically are calculated on W-2 input, which can be overridden.
Thus, payments are reportable by Y as Social Security and Medicare wages on A's Form W-2, together with the with-holding.
The employer reports the payments as Social Security and Medicare wages and reports the Social Security and Medicare tax withheld on a Form W-2 issued to the employee spouse.
The Social Security and Medicare wages and taxes withheld are reported on Form W-2.