Medicare Wages
Categories: Insurance
Medicare wages are wages that are subject to being taxed for Medicare. Like Social Security taxes, Medicare taxes must be paid by both employees and employers. Sucks for you if you’re self-employed, since that means you’ll be paying double Social Security and Medicare taxes...making your wages double Medicare wages.
Ouch. That hurt. Time to break out the Medicare.
In recent years, the first portion of income (like $200k) is taxed at a lower rate (less than 1.5% for Medicare in 2019). If you’re making the big bucks (as in, over $200k), then the amount above that will be taxed at a higher rate (like a bit over 2%). Social Security taxes take a much larger portion in a similar manner: above 7%.
In 2019 though, the Federal Insurance Contributions Act (FICA) combined the Medicare tax and Social Security tax rate, so your Medicare wages are also your Social Security wages. Until they change it again, anyway.