Additional Medicare Tax

In 2013 there is a new .09% Medicare Tax.   It affects individuals or self employed persons whose income exceeds $250,000 for MFJ ($125,000 MFS/$200,000 Single).   Employers must withhold the additional tax from wages paid in excess of $200,000, without regard to the person’s filing status. Employers are not required to notify employees when they begin additional tax withholding, nor is there an employer matching of the withheld amount. A line will be added to Form 941 (Employers Quarterly Federal Tax Return) for employers to report any individual’s wages paid during the quarter that are in excess of $200,000. However, there will be no change to Form W-2, as the additional tax withholding will be reported with regular Medicare tax withholding in box 6.