4: Bill Clay's filing status is married filing separately, and he has earned gross pay of $1,900. Each period he makes a 403(b) contribution of 10% of gross pay and contributes $75 to a cafeteria plan. His current year taxable earnings for Medicare tax, to date, are $199,600. Total Medicare Tax = $
4: Bill Clay's filing status is married filing separately, and he has earned gross pay of $1,900. Each period he makes a 403(b) contribution of 10% of gross pay and contributes $75 to a cafeteria plan. His current year taxable earnings for Medicare tax, to date, are $199,600.
Total Medicare Tax = $
It is the federal payroll tax that helps the employees and employers to pay for the medical programs. The Medicare tax is 2.9% of the income earned by the employee out of which 1.45% will be paid each by both the employer and employee.
After 2013, the employee should be pay an additional 0.9% over the limit of 1.45%, depending upon on the annual income and tax filing status.
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