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Medicare is one part of FICA. The ordinary employee rate is 1.45% of covered Medicare wages. There is no annual wage cap. Employers also withhold an additional 0.9% after they pay an employee more than $200,000 in a calendar year.
Related spellings covered here: FICA MT, FIM.
How to read this entry
Use the meaning Medicare payroll tax alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
On $2,000 of Medicare wages below the additional-tax threshold, ordinary employee withholding is $29. The employer’s ordinary share is a separate cost.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Use Medicare wages rather than assuming all pre-tax deductions reduce the base. The employer threshold for additional withholding is different from final liability based on filing status.
Compare related entries
Read the federal, state and local payroll tax codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on federal, state and local payroll tax codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.