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Video instructions and help with filling out and completing Medicare surtax 2022

Instructions and Help about Medicare surtax 2022

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 one point four five percent is withheld from the employees paycheck and pay to the IRS on behalf of the employee the other one point four five percent is paid by the employer so two point nine percent is paid to the IRS in Medicare taxes half of which is paid by the employee and the other half which is paid by the employer let's just take a quick scenario and this will be the same scenario that we calculated in the above video for Social Security we have an employee who is five thousand dollars in taxable wages this time we're going to calculate the Medicare expenses the employee portion of Medicare is one point four five percent which is point zero one four five if we multiply that by five thousand dollars we end up with a total of seventy two dollars and fifty cents the employer portion is another seventy two dollars and fifty cents which means that the total Medicare payment should be a hundred forty five dollars which again you can write at that amount by multiplying five thousand by point zero to nine which is two point nine 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 one hundred forty-five dollars in Medicare taxes you would remit the full amount you would remit 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 so therefore Medicare is pretty easy to calculate two point nine percent one point four four five percent by employee and one point five four percent by employer I hope this helps you to calculate your Medicare taxes.

FAQ

What changes were made to the 2022 withholding table?
Yesterday the Internal Revenue Service has released Notice 1036 updating the income-tax withholding tables as a result of the tax reform legislation enacted in December. This will be the first in several updated they will improve the accuracy of 2022 withholdings. Here is what your small business needs to know about the new IRS 2022 withholding tables and guidelines.The IRS Releases New 2022 Withholding TableImplementation of 2022 Withholding TableYou should be using the new 2022 withholding tables as soon as possible but no later than February 15th. However, before you implement the 2022 withholding tables continue to use the 2022 guidelines.Future Form W-4 RevisionsLater on this year the IRS plans to revise Form W-4 because this form is ultimately used to determine how much of their paycheck is withheld toward income taxes. Notice 1036 should help to minimize the burden on taxpayer and employers. At this time employees are not required to do anything.2022 Vs. 2022 Withholding TableThe new law passed last month made several changes to the established tax plan including an increase in standard deductions, the repeal of personal exemptions, and updates in tax rates and brackets.The new 2022 withholding tables should result in the correct amount of tax withholdings. Ideal this will mean not too much or too little. The IRS will be revising the withholding tax calculator on their website by the end of February. So your employees can understand their new withholdings.2022 Withholding Table DetailsEmployee portion of Social Security: 6.2% with a taxable wage of $128,400Employee portion of Medicare: 1.45% with no wage base limitMedicare Surtax: .9% which exceeds $200,000 or $250,000 for married taxpayersI hope this was helpful. I have also included links to the tax withholding tables: For more information click here:IRS 2022 Withholding Tables
Where can I see the new IRS witholding tables under the new tax law that were released today?
Yesterday the Internal Revenue Service has released Notice 1036 updating the income-tax withholding tables as a result of the tax reform legislation enacted in December. This will be the first in several updated they will improve the accuracy of 2022 withholdings. Here is what your small business needs to know about the new IRS 2022 withholding tables and guidelines.The IRS Releases New 2022 Withholding TableImplementation of 2022 Withholding TableYou should be using the new 2022 withholding tables as soon as possible but no later than February 15th. However, before you implement the 2022 withholding tables continue to use the 2022 guidelines.Future Form W-4 RevisionsLater on this year the IRS plans to revise Form W-4 because this form is ultimately used to determine how much of their paycheck is withheld toward income taxes. Notice 1036 should help to minimize the burden on taxpayer and employers. At this time employees are not required to do anything.2022 Vs. 2022 Withholding TableThe new law passed last month made several changes to the established tax plan including an increase in standard deductions, the repeal of personal exemptions, and updates in tax rates and brackets.The new 2022 withholding tables should result in the correct amount of tax withholdings. Ideal this will mean not too much or too little. The IRS will be revising the withholding tax calculator on their website by the end of February. So your employees can understand their new withholdings.2022 Withholding Table DetailsEmployee portion of Social Security: 6.2% with a taxable wage of $128,400Employee portion of Medicare: 1.45% with no wage base limitMedicare Surtax: .9% which exceeds $200,000 or $250,000 for married taxpayersI hope this was helpful. I have also included links to the tax withholding tables: For more information click here:IRS 2022 Withholding Tables
Where is all the money coming from for the Government's budget? Two trillion just announced for infrastructure alone and is just a portion of the budget? Why such a penance allowed for SS Retirement?
Where is all the money coming from for the Government's budget? Two trillion just announced for infrastructure alone and is just a portion of the budget? Why such a penance allowed for SS Retirement?Hold upThis a twou2019fer with a bad assumptionWhy such a penance allowed for SS Retirement?Bad assumptionSS is a program paid for in specific SS taxes - go look at your pay stub - look for FICA - it is explained belowSS is what it is because in 2022 Democrats beat up Republicans on Entitlement REFORMDid not matter that Clinton and Obama both were for these changes - it was an R proposal - and they wanted a W at any cost-Where is all the money coming from for the Government's budget? Two trillion just announced for infrastructure alone and is just a portion of the budget?Borrowed and taxedThis is the program Democrats wantedDemocrats still want to make infrastructure week happenWhat You Need To Know About The Democrats' Infrastructure Plan Before Voting November 6thU.S. Democrats seek up to $2 trillion to invest in aging...It will be paid for just like the New Deal of old was paid forsee How did FDR pay for the New Deal?From October 2022 u201cThe Democrats estimate the plan will create 10 million jobs, and to pay for it they propose rolling back the recently passed Republican tax overhaul and reinstating a top income tax rate of 39.6 percent, along with restoring the individual alternative minimum tax, reversing cuts to the estate tax, and raising the corporate income tax from 21 percent to 25 percent. u201c u201d Other ideas include imposing a federal gas tax.u201dEmployers' Responsibility for FICA Payroll Taxesu201cThe Federal Insurance Contributions Act (FICA) is the federal law that requires you to withhold three separate taxes from the wages you pay your employees. FICA is comprised of the following taxes:6.2 percent Social Security tax;1.45 percent Medicare tax (the u201cregularu201d Medicare tax); andSince 2022. a 0.9 percent Medicare surtax when the employee earns over $200,000.You must withhold these amounts from an employee's wages.The law also requires you to pay the employer's portion of two of these taxes:6.2 percent Social Security tax1.45 percent Medicare tax (the u201cregularu201d Medicare tax).u201d
What are the taxes that go towards financing of Obamacare: Federal, State or Medicare taxes?
The Affordable Care Act (ACA) has changed the healthcare insurance landscape. Some of the most important changes stemming from Obamacare center around taxes. Under the ACA, the total amount of new taxes on individuals and businesses will climb to $500 billion by 2023.Altogether, there are 21 new taxes linked to the ACA, some of them tax hikes and some of them tax breaks for U.S. healthcare consumers.Not surprisingly, those tax changes are geared toward credits for low-income Americans and tax hikes for higher earners (people who earn $200,000 annually on an individual basis, or $250,000 for an annual family income).Small business owners with annual incomes over $250,000 can also expect some changes to their tax bill, and not in a positive way.Hereu2019s a snapshot at how it breaks down:The federal government estimates that 85% of all Americans who already have health insurance wonu2019t face any, or at least any significant, changes to their taxes.Uncle Sam also estimates that of the remaining 15%, the tax changes revolve around three key pillars to the ACA - the individual mandate, the employer mandate and tax credits linked to healthcare exchange plan premium costs for individual Americans, families and small business owners.There is an outlier. Americans who had previously invested in healthcare savings accounts (HSAs) and flexible savings accounts (FSAs) will also see new limits on healthcare-related tax deductions.For most Americans, the biggest tax issue comes from the individual mandate, which states that U.S. adults who can afford to do so must sign up for healthcare, either directly through an insurance company, or via a state or federal healthcare insurance exchange.There are some exceptions.If the premium from the lowest-priced bronze plan purchased through a health insurance exchange in his or her home state is more than 8% of the purchaseru2019s household annual income, an exception is granted.The purchaseru2019s annual household income is below the threshold for IRS tax filing statutes.Also, some Americans may be granted a tax exemption for religious beliefs, not being a U.S. citizen, being in prison, or belonging to an American Indian tribe.Of the specific, remaining ACA-related tax issues, here are some that may have the most impact on working Americans.Tax on income - A new $123 billion tax on investment income, which took effect in January 2022. places a 3.8% surtax on investment income on households with more than $250,000 in annual income or $200,000 for individuals.Individual mandate - A new $65 billion tax on both the individual mandate and the employer mandate, which took effect in January 2014.Anyone who doesnu2019t buy qualifying health insurance will have to pay an income surtax. This extra tax is calculated by taking the higher of the listed percentage of adjusted gross income (AGI) Source: PPACA Legislation, pages 317-337On the employer side, companies with 50-or-more employees face taxes of $2,000 (non-deductible) for not offering health coverage, per employee.Cadillac tax - A $32 billion excise tax on so-called Cadillac health insurance plans favored by more affluent Americans. The tax applies to healthcare plans valued at $10,200 for individuals, and $27,500 for family plans. The tax takes effect on Jan. 1, 2018.High bills tax u2022 The ACA brings with it a $15 billion tax on individuals who take a deduction based on having high medical bills. The old threshold of expenses exceeding 7.5% of AGI is replaced with a threshold of 10%, as of January 2022. From 2013-2016, Americans 65-and-over are exempt from this tax.Health savings accounts tax u2022 The ACA places a cap limit on flexible spending accounts of up to $2,500 (there currently is no cap on such plans.) Thereu2019s also a new tax, estimated at $5 billion, called the medicine cabinet tax, where U.S. adults cannot use health savings accounts, flexible spending accounts or health reimbursement pre-tax dollars to buy non-prescription, over-the-counter medicines.Indoor tanning tax u2022 This tax, which went into effect in July 2022. placed a 10% excise tax on U.S. indoor tanning salons. Itu2019s expected to bring in $2.7 billion in new tax revenues.High-risk tax - An annual $63 fee levied by Obamacare on all plans (decreased each year until 2022 when pre-existing conditions are eliminated) to help pay for insurance companies covering the costs of high-risk pools.Medicare tax - Paul Jacobs, a Certified Financial Planner (CFPu00ae) with Palisades Hudson Financial Group, Atlanta office, says thereu2019s a new 0.9% Medicare surtax applied to wages and self-employment income over $200,000 for individuals and $250,000 for married couples. u201cWhile employers will collect this tax in most cases by withholding from the employee's paycheck, certain taxpayers who either switch jobs during the year or hold multiple jobs may be surprised to see they owe additional tax with their 2022 returns,u201d he says.Medicare tax on investments - A new 3.8% Medicare tax on investment income could impact many Americans, especially higher-income Americans. According to the IRS, the 3.8% tax on net investment income applies to unincorporated taxpayers (basically individuals, estates, and certain trusts) who have modified adjusted gross income (MAGI) in excess of these annual income levels:$250,000 in the case of married taxpayers filing a joint return or a surviving spouse$125,000 in the case of a married taxpayer filing separately$200,000 for everyone else, except estates and trusts, where the threshold is equal to the highest amount at which the maximum tax rate begins (in 2022 it was projected to be $11,950).The Bottom LinePeople may not realize it, but amidst all the controversy about how Obamacare was rolled out, there is a bevy of taxes awaiting Americans. Itu2019s in your best interests to know about those taxes, and consult a tax specialist to minimize any financial damage.Refer to this Website: New Taxes Under The Affordable Care Act, and also: What tax changes did the Affordable Care Act make?Read more: New Taxes Under The Affordable Care Act | Investopedia http://www.investopedia.com/arti...Hope this is helpful.
Why did Obama Care fail to work as expected?
Itu2019s important to understand that Obamacare worked extremely well in some places (where state and local authorities implemented their portions of the law) and less well in other places.But first, itu2019s important to talk about how the law was expected to work.You can think of the ACA (Affordable Care Act aka Obamacare) as a series of interlocking gears designed to mimic a system of universal health care. The overall goal was to increase access to health care by increasing the number of people with health insurance; why this approach? Because in the US, health insurance is the primary means of access to health care - you insurer has negotiated prices with networks of physicians, hospitals, clinics and pharmacies. You get better pricing by staying in those networks. The ACA included a set of regulations designed to protect individuals (such as not allowing insurers to cancel insurance to persons with pre-existing conditions).A key concept is that the ACA was, by design, intended to mimic a system of universal health care by using government regulations and private insurance companies to deliver health insurance. It was not intended to be a system of universal health care.The ACA included multiple gears:Regulations on insurers; i.e. not being able to exclude persons with pre-existing conditions and allowing persons under the age of 26 to stay on their parentsu2022 insurance plans.Expanding Medicaid to cover more personsThe Employer Mandate which required employers with more than 50 full time employees to offer health insurance (important because the number of employers offering health insurance had been declining over the years)The Individual Mandate requiring all persons to have health insuranceThe State Insurance Exchanges to facilitate individual purchases of health insurance by persons who did not have it through their employersSubsidies to individuals and insurers while the Exchanges got goingInsurance u201ccooperativesu201d which would create new competition for insurance and which would receive federal subsidies to support them while they started up.Iu2019m sure thereu2019s something Iu2019m forgetting here but those are the big components. The basic concept here is that each of these interlocking gears would start working together to increase the number of persons with health insurance and, hopefully, increase competition and help manage health care costs.If the gears are all working it goes something like this:Insurance companies cover more people because the regulations require them to; because more employers offer coverage, more people are covered that way. For those who donu2019t get coverage through their employer, the exchanges provide easy access OR because they only make 400% of poverty level wages, they get insurance through Medicaid. The cooperatives provide competitive insurance which holds rates down, and individuals purchasing on the exchanges receive subsidies if they are below a certain income level. The whole system results in more people with insurance, getting their preventative screenings and care, thus catching illnesses faster, treating them sooner at lower cost and saving the system money. Overall, more people in the system, getting more affordable care results in lower medical inflation and u201cbendingu201d the cost curve.In states with Democratic leadership, these gears were put into place and the number of persons with health insurance increased. The Medicaid expansion, the exchanges and individual subsidies made health insurance more affordable. FWIW, yes, premiums on the exchanges increased, and in some cases dramatically, but subsidies to individual buyers helped offset those increases; persons purchasing through the exchanges also represented something like 5% of the total insurance customer base.Other policies, such as allowing persons under 26 to stay on their parents insurance, extended coverage to millions of people.In states with Republican leadership, some but not all of the gears were put into place. Utah, for example, had a viable and well managed exchanged but rejected the medicaid expansion. Utah, also, had a potentially viable health insurance cooperative. However, after the Republican takeover of Congress in January 2022. Congress did not vote to support to the cooperatives through the startup phase and many went bankrupt (Utahu2019s Arches Insurance is a great case study in what happens when Congress abruptly shifts policy). And yet, despite that, the basic numbers were good - millions of people covered who werenu2019t before as well as the actual rate of medical inflation declining for the first time in 50 years.The ACA has both worked and not worked. Since the moment it was passed, it has faced deliberate obstruction and opposition by opponents; it has had few supporters.It didnu2019t have to be this way.Remember, that the ACA began life as conservative counter-proposal to the Clinton Health Care proposal in the 1990s. By design, it kept in place key components of the US health care system including private insurance and employer sponsored insurance. The combination of regulation on insurers, mandates and exchanges were intended to introduce a form of managed competition. Democrats were willing to introduce a conservative means to achieve a progressive end - managed competition to create universal (or near universal) health care. The law itself was debated for almost a year. Many Republican proposals were added to the bill. The obstruction and deliberate sabotage of the bill has made it dysfunctional. None of that had to be. Republicans could have claimed and ideological win (free market reforms to health care) and Democrats could have claimed expanding health care. Many of the sticking points could have been ironed out. Conservative opposition to the ACA was, in some cases, grounded in opposition to any form of universal healthcare, but also in a purely political desire to deny the Democrats and Obama administration any political wins. The people who lost are the millions of Americans who will be denied health care as a result.
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