The Internal Revenue Service and Department of Treasury issued final regulations (TD 9645) on the 0.9-percent Additional Medicare Tax (IRC §3101(b) and 1401(b)).

Effective Jan. 1, 2013, Additional Medicare Tax applies to a taxpayer’s Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income that exceed a threshold amount based on the taxpayer’s filing status.

An employer is responsible for withholding the 0.9% Additional Medicare Tax from wages or RRTA compensation it pays to an employee in excess of $200,000 in a calendar year.  There is no employer match for the Additional Medicare Tax.

For additional information, taxpayers and employers can refer to the questions and answers and the IRS YouTube video about Additional Medicare Tax on IRS.gov.