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The wage base limit is the maximum wage that's subject to the tax for that year. For earnings in 2024, this base is $168,600. Refer to "What's New" in Publication 15 for the current wage limit for Social Security wages.
FICA Tax: Definition and How It Works in 2024-2025. FICA is a payroll tax that goes toward funding Social Security and Medicare. Employees and employers split the total cost.
The 2024 Medicare tax rate is 2.9% total. You’re responsible for paying half of this total Medicare tax amount (1.45%) and your employer is responsible for the other 1.45%. Your Medicare tax is deducted automatically from your paychecks.
The annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, an increase of $14 from the annual deductible of $226 in 2023.
Summary. Medicare taxes refer to a federal tax that helps fund Medicare. Most people who are employees, self-employed, or employers must pay Medicare taxes. Paying Medicare tax doesn’t automatically make you eligible for coverage, though. There are two main types of Medicare taxes:
For 2024, individuals with earned income over $200,000 ($250,000 for married couples filing jointly) may be subject to the additional Medicare tax. Note: Employers don’t have to pay a...
The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2023. There is no wage base limit for Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $2,700 or more in cash wa-ges in 2024. For more information, see Cash wages, later.