There's no wage base limit for Medicare tax. Refer to 'What's New' in Publication 15 for the current wage limit for social security wages. For earnings in 2024, this base is $168,600. The wage base limit is the maximum wage that's subject to the tax for that year. Only the social security tax has a wage base limit. Federal income tax returns for 2023 are due by April 15, 2024, or October 15, 2024, with a tax extension. For more information, see the Instructions for Form 8959 and Questions and Answers for the Additional Medicare Tax. There's no employer match for Additional Medicare Tax. An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. What about employees paid prior to 2020 who want to adjust withholding from their pay dated January 1, 2020, or later 19. How do I treat new employees first paid after 2019 who do not furnish a Form W-4 18. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual's wages paid in excess of $200,000 in a calendar year, without regard to filing status. Are new employees first paid after 2019 required to use the redesigned form 17. Additional Medicare Tax Withholding RateĪdditional Medicare Tax applies to an individual's Medicare wages that exceed a threshold amount based on the taxpayer's filing status.

Refer to Publication 15 (Circular E), Employer's Tax Guide for more information. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. Social Security and Medicare Withholding Rates Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance taxes, also known as Medicare taxes.

Irs tax withholding table 2020