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.
9% Medicare tax from J's salary beginning with the paycheck in which his annual Medicare wages
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
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.
If the accrued compensation payments are made in the year of death, the applicable amounts should be reported as Social Security wages (box 3) and Medicare wages
(box 5) on the decedent's final W-2, so that proper credit for those earnings is received.
Because the Medicare cap was eliminated in 1994, any amounts deferred in that year or later years should have been reported on a Form W-2 as Medicare wages
, and Medicare withholding should have been taken on the whole amount.
1993 and earlier: In 1994, the cap on Medicare wages
($135,000 in 1993) was eliminated.