Additional Medicare Tax — Payroll Definition
What is Additional Medicare Tax? Clear definition and explanation for payroll professionals, HR managers, and employees.
What is Additional Medicare Tax?
The Additional Medicare Tax is a 0.9% surtax on earned income exceeding $200,000 for single filers ($250,000 MFJ). Unlike the standard 1.45% Medicare tax which is split between employee and employer, this additional tax is paid entirely by the employee. Employers must begin withholding this tax once wages exceed $200,000, regardless of filing status.