What Is Medicare Tax?

The Federal Insurance Contributions Act, known as FICA, requires that taxpayers contribute to Medicare -- the federal health insurance program that covers the elderly and the disabled. This is commonly what's meant by the Medicare tax.

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Federal Insurance Contributions Act

As part of FICA, you pay 1.45 percent of your earnings each paycheck, and your employer matches that, for a total of 2.9 percent. If you’re self-employed, you pay the entire 2.9 percent on your own -- this is part of the self-employment tax.

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Medicare tax withheld is part of the payroll tax contribution

that goes toward funding the federal organization that makes it possible for.

Federal taxes help the government to fund programs that help American citizens in several ways, such as with education and health insurance.

The term "Medicare employee" actually refers to the contribution you make through payroll taxes to the Medicare public-benefits program. These contributions are.

As an employer you should understand how to calculate employee taxes so that the right amount of federal, state, Social Security and.

What Taxes Are Included in FICA. The Medicare tax portion, also known as hospital insurance, of FICA is smaller than the.

Fed Med/EE tax is the federal Medicare tax. The Medicare tax is collected on all wages earned in the United States, with.


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Source: ehow.com

Category: Insurance

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