Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.
Money used to pay health insurance for people who are 65 or older. Your employer withholds 1.45 percent from your wages and contributes a matching dollar amount to make a Medical Tax payment totaling 2.9 percent of your earnings.
Tax paid for Medicare. This amount is 1.45% of wages for employees and 2.9% of net profit for self-employed taxpayers.
One component of the FICA tax (the other component in Social Security). This payroll tax is withheld from employees' payroll checks and is also matched by the employer. It is assessed on all wages and salaries at the rate of 1.45%. With the employer including its 1.45% matching amount, the amount remitted to the federal government will be 2.9% of employees' wages and salaries. To Top
A tax of 2.9% of the wages of an employee, half of which is paid by the employer and half of which is paid by the employee through withholding. Self employed persons pay the entire Medicare tax on their taxable profits.
The portion of the Social Security tax — 1.45% for employees and 2.9% for self-employed taxpayers - that pays for Medicare. Although the part of the tax that pays for retirement benefits stopped at $94,200 in 2006, the Medicare portion applies to all wages and self-employment income. In 2007, we estimate that the limit for the Social Security portion of the tax will be around $98,400.