Medicare is withheld at what rate?

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Multiple Choice

Medicare is withheld at what rate?

Medicare tax withholding from an employee’s wages is 1.45%. This is the standard employee portion of the Medicare tax under FICA, with the employer also contributing an equal 1.45% on the employee’s behalf, for a total Medicare tax of 2.9% on wages. There is an additional 0.9% Medicare tax that applies to high earners, but that does not change the base withholding rate for most employees. So the rate reflected by typical withholding is 1.45%. The other options don’t match the standard withheld rate.

Medicare tax withholding from an employee’s wages is 1.45%. This is the standard employee portion of the Medicare tax under FICA, with the employer also contributing an equal 1.45% on the employee’s behalf, for a total Medicare tax of 2.9% on wages. There is an additional 0.9% Medicare tax that applies to high earners, but that does not change the base withholding rate for most employees. So the rate reflected by typical withholding is 1.45%. The other options don’t match the standard withheld rate.

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