Additional FICA medicare tax

Alerts and notices

The IRS requires employees to pay an additional 0.9% Medicare tax on wages in excess of a threshold determined by the employee's filing status. Employers are required to withhold the additional Medicare tax on wages in excess of $200,000 regardless of the employee's filing status.

For more information, review IRS's website article: Questions and Answers for the Additional Medicare Tax, Will Additional Medicare Tax be withheld from an individual's wages?

A separate withholding item, FICA-MED2, has been created to reflect this change. Show me

Note: It is important to enter manual checks by sequential date in order to calculate the year to date payroll taxes correctly.