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The Medicare tax on earned income increases this year for
individuals earning more than $200,000 and married couples earning more than
$250,000. The tax on earnings above these thresholds will increase from 1.45%
to 2.35%. This tax increase will also apply to self-employment income exceeding
the threshold amounts.
Employers are required to withhold the additional tax from
wages exceeding $200,000, regardless of the individual's filing status. They
are not required to inform employees when they begin the additional
withholding, nor are they required to match the additional withholding.
Employers who don't withhold
the additional Medicare tax required this year may be subject to penalties in
addition to the tax, according to an IRS official. If employees pay the
additional Medicare tax at the end of the year, the employer may only be
required to pay the penalties.
Last Updated by Noel Dalmacio on 2013-04-24 01:49:26 PM