Glossary

Additional Medicare tax

An extra withholding on high wages that the employer must deduct and remit but does not match.

Above a wage threshold the employer must withhold an additional amount from the employee and pay it over with the rest of the payroll deposit. Unlike the base Medicare tax, there is no employer share — it is the employee's liability, collected through payroll. That makes it an administrative obligation rather than an employer cost, and including it in a cost of hire overstates the figure. Several published employer-cost calculators add it anyway.

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