The Payroll Medicare Date refers to employees hired after which date being paid into Medicare?

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Multiple Choice

The Payroll Medicare Date refers to employees hired after which date being paid into Medicare?

Medicare payroll tax is the portion of FICA that funds Medicare, and employers must withhold it from employees’ wages. The date used as the Payroll Medicare Date marks when this withholding becomes required from the start of employment. A legislative change in the mid-1980s broadened when Medicare tax applies to new hires, so from January 1, 1986, employees are subject to Medicare withholding on wages from the date of hire. That’s why the Payroll Medicare Date is set to January 1, 1986—the cutoff point used to determine that Medicare tax should be paid on earnings for employees hired after that date.

Medicare payroll tax is the portion of FICA that funds Medicare, and employers must withhold it from employees’ wages. The date used as the Payroll Medicare Date marks when this withholding becomes required from the start of employment. A legislative change in the mid-1980s broadened when Medicare tax applies to new hires, so from January 1, 1986, employees are subject to Medicare withholding on wages from the date of hire. That’s why the Payroll Medicare Date is set to January 1, 1986—the cutoff point used to determine that Medicare tax should be paid on earnings for employees hired after that date.

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