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Tax deducted from the wages of every legally working American that is used to pay for the Medicare program provided to individuals over the age of65. This is typically another line item included on an employee's paystub. At the end of year, the employer will provide the employee with a W-2 and this will include the total amount deducted from the individual's paycheck for the Medicare tax. The tax was implemented under the Federal Insurance Contributions Act.
Tax imposed on the employee deduct part of his salary and at the same time imposed on the institution to deduct a certain amount calculated on the basis of a percentage of salary in exchange for providing certain medical services and specific under an insurance contract Aoakdtababh Yearly
A Tax deducted from the wages/salaries of employees like social security deduction known as medicare tax. This tax applicable in UAE. The emloyee is citizen or resident, it does not matters, the employer have deduct the tax in both the situations.
Your payments of these taxes contributes to your coverage towards the USA social security system.
The United States government imposes a Medicare tax of2.9% on wages received by an employee and on business or farming income earned by self-employed individuals. Medicare taxes were increased by an additional0.9% to3.8% for higher-income individuals in the year2013
Medicare taxes are imposed at a flat tax rate of2.9% on wages, salaries, and business or farming income earned by self-employed individuals. There's no limit on the amount wages subject to Medicare taxes, unlike the annual wage limit for Social Security taxes.
The Medicare hospital insurance tax is paid half by employees through payroll deductions and half by the employer. Accordingly, employees pay a Medicare tax rate of1.45% (half of the2.9% rate).
Self-employed persons pay both halves of the Medicare tax since they are both the employee and the employer. However, self-employed persons are allowed to deduct half of the Medicare tax as an adjustment to income. Self-employed persons calculate and pay their Medicare tax when filing their personal tax return as part of the self-employment tax.
An additional Medicare tax of0.9% applies to Medicare wages and to net self-employment income over a threshold amount. The threshold amounts are:
Ms. Elke Woofter and almost all have explained the concept very clearly. It is a social welfare measure for the senior citizens. Agreed with all.
I agree to answers provided
Agreed to Mr. georgei assi
