What is the medicare tax rate
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Chicago, IL (PRWEB) January 03, 2013
For 2013, the Medicare tax rate is 1.45% each for the employee and employer. There is no wage base limit for Medicare tax. Real Business Solutions released Payroll Mate 2013, the comprehensive payroll software with support for the latest payroll tax calculations. Payroll Mate is trusted by thousands of businesses and payroll departments nationwide.
Payroll Mate 2013 trial download is available from http://www.PayrollMate.com/ .
In addition to withholding Medicare tax at 1.45%, employers must withhold a 0.9% Additional Medicare Tax from wages paid to an employee in excess of $200,000 in a calendar year. Employers are required to begin withholding Additional Medicare Tax in the pay period in which wages in excess of $200,000 are paid to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.
Payroll Mate is always one of the first payroll preparation solutions to implement payroll updates and new government regulations. Payroll Mate makes doing payroll easy, smooth, predictable, and of course affordable
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Below is a short list of what Payroll Mate can do:
- Automatically calculates federal payroll tax and state payroll tax withholding.