Medicare Tax
/ˈmɛdɪˌkɛr tæks/
Definitions
- (n.) A federal payroll tax collected under the Federal Insurance Contributions Act (FICA) to fund the Medicare health insurance program for elderly and certain disabled individuals.
Employers are required to withhold Medicare tax from employees' wages.
Forms
- medicare tax
Related terms
See also
Commentary
Medicare tax is typically withheld alongside Social Security tax from wages; it is important to distinguish it from general income tax and to note its specific purpose of funding Medicare benefits.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.