Which category is Medicare taxable (POST)?

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Multiple Choice

Which category is Medicare taxable (POST)?

Medicare tax (a FICA tax) applies to compensation that is treated as earnings for payroll tax purposes. In this POST setup, only the amounts categorized as Medicare are considered taxable for Medicare. The other POST categories—retirement contributions, OBRA contributions, and union dues—are treated as deductions or non-taxable for Medicare, so they don’t carry the Medicare tax. Therefore, the category labeled Medicare is the one that triggers Medicare tax.

Medicare tax (a FICA tax) applies to compensation that is treated as earnings for payroll tax purposes. In this POST setup, only the amounts categorized as Medicare are considered taxable for Medicare. The other POST categories—retirement contributions, OBRA contributions, and union dues—are treated as deductions or non-taxable for Medicare, so they don’t carry the Medicare tax. Therefore, the category labeled Medicare is the one that triggers Medicare tax.

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