Additional Medicare Tax — Payroll Definition

Additional Medicare Tax paystub meaning: A 0.9% surtax on wages exceeding $200,000 (single) for high earners. Codes: ADDL MED.

A 0.9% surtax on wages exceeding $200,000 (single) for high earners.

The Additional Medicare Tax is a 0.9% surtax on earned income exceeding $200,000 for single filers ($250,000 MFJ). Unlike the standard 1.45% Medicare tax which is split between employee and employer, this additional tax is paid entirely by the employee. Employers must begin withholding this tax once wages exceed $200,000, regardless of filing status.

Tax entries on a pay statement depend on taxable wages, current employee elections, filing status, pay frequency, jurisdiction, and current agency instructions. Compare the current-period amount with year-to-date totals and the employer-issued record before treating it as final.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.