Author: Rena Pirsos, XpertHR Legal Editor

Beginning with wages paid in 2013, an additional 0.9% Medicare tax rate will apply to single employees who earn more than $200,000 and to married couples who file joint tax returns and earn more than $250,000. For high earners, therefore, the total Medicare tax rate will be 2.35%. In 2012, the rate is 1.45% for all employees.

Employers will not pay the additional 0.9% in matching contributions. The additional 0.9% is based on single status; married couples who are underwithheld will pay quarterly estimated taxes. +I.R.C. § 3101(b)(2).

In addition, the temporary 2% cut in the employee Social Security tax rate is scheduled to expire on December 31, 2012. The current 4.2% rate will revert back to 6.2% unless it is extended in federal legislation.

Additional Resources

Payroll > Withholding Taxes > FICA Tax Rates

Payroll > Taxation of Employee Compensation > Reporting Requirements