Medicare Tax Law

Medicare Tax Law is part of the U.S. payroll tax system that funds Medicare, the federal health insurance program for people aged 65 and older, and some younger individuals with disabilities. Employers and employees each contribute 1.45% of their earnings, with an additional 0.9% tax on high earners (over $200,000 for individuals). This tax is automatically deducted from paychecks and helps ensure that healthcare services are available to eligible beneficiaries. Understanding this tax is essential for budgeting personal finances and knowing how contributions impact future Medicare benefits.