Medicare Taxable Wages Definition
The wages taxed that support the Medicare system. These wages are calculated the same way as Social Security taxable wages, except there is no wage limit.
Medicare Taxable Wages Extended Definition
Medicare taxable wages refer to the employee wages which are subject to Medicare tax. It is calculated as the employee’s gross earnings less the non-taxable items, without any maximum on gross wages.
Employers are required to withhold 1.45% of employees’ wages as Medicare tax and submit a matching amount to cover the costs of the Medicare program.
Last Updated By
Rachel Blakely-Gray | Apr 28, 2023