Medicare Tax Rate Increase For Certain Employees
Beginning Jan 1, 2013 employers will be required to implement a higher tax withholding for the new Medicare tax rate for employees whose earnings are over $200k for single filers, over $250k for employees filing jointly, and over $125k for employees who are married but are filing separately, according to Stephen Miller. This is a new Medicare tax rate that will be increased by .9 percent (from 1.45 percent to 2.35 percent), according to Miller.
What is interesting is that there is no employer match requirement and the employer does not have to notify the employee of the increase in the Medicare tax rate.
What do you think about this?