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9% Additional Medicare Tax
Is anyone adhering to this?
It is up to the employee to fill out form 8959
the employee trues up using form 8959 when filing their taxes.
A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:
$250,000 for married filing jointly;
$125,000 for married filing separately; and
$200,000 for all other taxpayers.
Hi @Rich Bejarano --
I want to refer you to IRS Topic 560, specifically the Employer Responsibilities section:
An employer is responsible for withholding the Additional Medicare Tax from wages or railroad retirement (RRTA) compensation it pays to an employee in excess of $200,000 in a calendar year, without regard to filing status. An employer must begin withholding Additional Medicare Tax in the pay period in which the wages or railroad retirement (RRTA) compensation paid to an employee for the year exceeds $200,000. The employer then continues to withhold it each pay period until the end of the calendar year. There's no employer match for Additional Medicare Tax.
Delivered PeopleSoft will do this; you can see it in the Tax Table under the Special Tax Amounts tab (Special Tax Amount 2 is the taxable gross at which it starts) and the Additional Rates tab (Additional Medicare EE is the rate for the tax).