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What Is Medicare Tax?

The Federal Insurance Contributions Act, known as FICA, requires that taxpayers contribute to Medicare -- the federal health insurance program that covers the elderly and the disabled. This is commonly what's meant by the Medicare tax.

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Federal Insurance Contributions Act

As part of FICA, you pay 1.45 percent of your earnings each paycheck, and your employer matches that, for a total of 2.9 percent. If you’re self-employed, you pay the entire 2.9 percent on your own -- this is part of the self-employment tax.

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that goes toward funding the federal organization that makes it possible for.

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As an employer you should understand how to calculate employee taxes so that the right amount of federal, state, Social Security and.

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Fed Med/EE tax is the federal Medicare tax. The Medicare tax is collected on all wages earned in the United States, with.


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