Medicare Wages and Tips (W-2) is the total amount of an employee’s earnings subject to Medicare tax, reported in Box 5 of the W-2 form, including wages, tips, and certain benefits.
- What are Medicare wages and tips (W-2)?
Answer: It is the total earnings subject to Medicare tax on the W-2. - What is included?
Answer: It includes wages, tips, and imputed income like group life insurance. - What is the Medicare tax rate?
Answer: The rate is 1.45% for employees, matched by employers. - Is there a wage cap?
Answer: No, unlike Social Security, Medicare tax applies to all wages. - What role does HR play?
Answer: HR ensures accurate reporting on W-2 forms.
