Medicare Taxable Wages Definition
The wages taxed that supports the Medicare system. It is calculated the same way as Social Security taxable wages, except there is no wage limit.
Extended Definition
Medicare taxable wage refers to the employee wages on which Medicare tax is paid. It is calculated as the employee’s gross earnings less the non-taxable items, without any maximum on gross wages. Employers are required to withhold 1.45% of employee’s Medicare wages as Medicare tax and submit a matching amount to cover the costs of the Medicare program.
Related Blog Article:
What Are Taxable Wages?
A Closer Look at Medicare and Medicare Taxes