Question

What is the 2016 Medicare tax rate? This rate is applied to what maximum level of salary and wages.

Answer 1

Medicare tax rate for the year of 2016 is 1.45% . and an exception of exception of an “additional Medicare Tax” assessed against all taxable wages paid in excess of the applicable threshold limit. Employers are required to withhold the additional Medicare Tax at a 0.9 percent rate on wages and other compensation it pays to an employee in excess of $200,000 in a calendar year. There is no employer match for the additional Medicare Tax.

There is no minimum limit to assess Medicare Tax. It is applicable to all gincome groups i.e. Salary , Wages, self employed income etc.