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Additional Medicare Tax withholding Form: What You Should Know
If you are required to claim the Additional Medicare Tax on your Form 941, you may have to include the amount of your Additional Medicare Tax in your income as taxable income. You must include this amount on this year's return. Use Form 8959 and related forms or instructions and instructions provided by the Internal Revenue Service's (IRS) Information Services Division (ISD) at () and, the payment Solution website () to calculate and file any supplemental information to a tax return that requires an estimated Additional Medicare Tax. Other information may be available for your state from the IRS. The IRS has announced a public event (date/time TBA) on June 16, 2019, at noon EST, at 10:00 am. The event will include a question and answer forum with IRS employees. Income-Sharing Credit Most workers who receive employer-provided health care must use an employer-provided health coverage or pay a penalty. Most employers do NOT provide health insurance for their workers. You may also be able to receive medical care through a government plan such as Medicare, Medicaid, or TRI CARE. However, unless your employer provides medical care coverage, you must be self-sufficient. The credit is: Up to 35% of the total amount you paid for health care covered by your employer for calendar year 2023 that is not considered a qualified health plan. The amount you paid for health care is the portion of your wages for health benefits received from your employer and is determined each pay period. The credit for any year is 2,500. If you were paid 500 in wages in a year for 5,000 in wages in that year, the credit will be: 1,500 or 35 percent of the 5,000. Up to 15% of the total amount you paid in 2023 that is not considered a qualified health plan (5,000 in taxable wages). This credit is phased out with 35,000 in wages for 2018. Health Insurance Coverage The Affordable Care Act mandates that everyone will be required to have some form of health insurance coverage by 2023 or pay a penalty.
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Video instructions and help with filling out and completing Additional Medicare Tax withholding
Instructions and Help about Additional Medicare Tax withholding
In this presentation we will take a look at the calculation for Medicare tax for more accounting information and accounting courses visit our website at accounting instruction dot info here we are on the payroll register we have our two employees Bill and Pam we have over here the regular pay the overtime pay and then the total earnings when looking at the calculation for Medicare we're going to be looking at the earnings for Medicare which could differ from the earnings for the total earnings so remember when we look at the total earnings that's of course the regular pay and the OT pay when we start to calculate the payroll taxes then we may have to adjust the earnings for example fi T is going to be reduced possibly by things like a 401k plan or a retirement plan and a cafeteria plan the OASDI or Social Security is going to have a cap which is the major component as well as possibly being reduced by something like a cafeteria plan the H I which is part of FICA is going to be different than the OASDI or the Medicare will differ from the OASDI and in this case there's no cap so that's the major difference between the two types of wages in for the FICA taxes so for the H I wage we're going to reduce it just by the cafeteria plan the difference then between the Medicare wages here and the total earnings up here will be the cafeteria plan so in this example then the seven 56.5 total earnings minus the 500 6.5 medicare earnings is 250 that then would be the cafeteria plan here like the health insurance type plan so that's going to be the major difference that could be there between...