If you see a Medicare deduction on your paycheck, it means that your employer is fulfilling its payroll responsibilities. This Medicare Hospital Insurance tax is a required payroll deduction and provides health care to seniors and people with disabilities.28 Mar 2022
When is Medicare tax withheld?
Beginning January 1, 2013, employers are responsible for withholding the 0.9% Additional Medicare Tax on an employee's wages and compensation that exceeds a threshold amount based on the employee's filing status. You are required to begin withholding Additional Medicare Tax in the pay period in which it pays wages and compensation in excess of the threshold amount to an employee. There is no employer match for the Additional Medicare Tax.
Do you pay federal unemployment tax?
You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay.
