Medicare — Payroll Definition

What is Medicare Tax?

The employee Medicare tax rate is generally 1.45% of covered wages and has no Social Security-style wage cap. An employer must begin withholding an additional 0.9% after it pays one employee more than $200,000 during the calendar year, regardless of that employee's filing status. The employee's final Additional Medicare Tax liability is reconciled on the tax return and uses filing-status thresholds.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

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