I welcome the easy payroll guy. My name is Karen Hutchinson, and in this video, we're going to talk about how to calculate Medicare taxes. Medicare taxes are also imposed on the employer and the employee. The employer and the employee will split this tax. So, 1.45 percent is withheld from the employee's paycheck and paid to the IRS on behalf of the employee. The other 1.45 percent is paid by the employer. So, 2.9 percent is paid to the IRS in Medicare taxes, half of which is paid by the employee and the other half is paid by the employer. Let's take a quick scenario, which will be the same scenario that we calculated in the above video for Social Security. We have an employee who has $5,000 in taxable wages. This time, we're going to calculate the Medicare expenses. The employee portion of Medicare is 1.45 percent, which is 0.0145. If we multiply that by $5,000, we end up with a total of $72.50. The employer's portion is another $72.50, which means that the total Medicare payment should be $145. Again, you can write that amount by multiplying $5,000 by 0.029, which is 2.9 percent. So, when you pay your 941 taxes either monthly or semi-weekly, if this were the amount that you were paying on, you would pay $145 in Medicare taxes. You would remit the full amount, including the employee portion and the employer portion, all at the same time. But just remember that this tax is paid by both the employee and the employer. What about a maximum wage limit? Unlike Social Security taxes, there is no maximum wage limit. So, you will be taxed on all taxable wages. Therefore, Medicare is pretty easy to calculate at 2.9 percent, 1.45 percent by the employee, and 1.45 percent...
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Medicare surtax 2023 Form: What You Should Know
Oct 14, 1938 – Oct 15, 1949 531,500 1.2575.000 1.7500.000 1.2575.0001.2575.0001.2575.0002.2503.00021.000Aug 26, 2023 – Aug 28, 2023 1.2575.000 1.7500.000 1.7500.0001.2575.0001.2575.0002.2503.00021.000Aug 28, 2023 – Sept 28, 2023 1.7500.0001.7500.0003.0000.0004.00005.00006.0000Nov 4, 1947 – Nov 5, 1951 531.5001 1.2575.000 1.7500.0001.2575.0001.2575.0002.2503.00021.000Aug 26, 2023 – Aug 28, 2023 1.2575.0001.7500.0003.0000.0004.00005.00006.0000Oct 14, 1938 – Oct 15, 1949 531.5005 1.2575.000 1.7500.0001.2575.0001.2575.0002.2503.00021.000Aug 26, 2023 – Aug 28, 2023 1.2575.0001.7500.0003.0000.0004.00005.00006.0000Aug 28, 2023 – Sept 28, 2023 1.7500.0003.0000.0005.0000.0003.0000Oct 13, 1937 – Oct 18, 1949 531.5006 1.2575.000 1.7500.0001.2575.0001.2575.0002.2503.00021.000Aug 26, 2023 – Aug 28, 2023 1.2575.0001.7500.0003.0000.0004.00005.00006.0000Oct 15, 1938 – Oct 19, 1952 531.5007 1.2575.000 1.7500.0001.2575.0001.2575.0002.2503.00021.000Aug 26, 2023 – Aug 28, 2023 1.2575.0001.7500.0003.0000.0004.00005.00006.
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