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Why is Medicare taken from your paycheck?

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2008-12-23 04:49:27
2008-12-23 04:49:27

During your working life, you pay Medicare tax out of your paycheck. That tax pays for your Medicare Part A (hospitalization). When you turn 65 and enroll in Medicare, you can choose to enroll in Part B (medical/doctor's office). The premium for Part B for 2009 is $96.40 per month (if you make less than $85,000.00 per year) which is automatically deducted from your Social Security check.

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Yes. Social Security and Medicare are taken out of your income before you see your paycheck. Your employer also pays an additional Social Security and Medicare tax to your account.


The FICA -MC on your paycheck is a reference to the deduction for Medicare. The Medicare deduction should be 2.9 percent of your total earnings.


Because that is how Congress decided to pay for the Medicare program.


20 year old single male: 1.5% Employer's match the 1.5% for a total of 3% (.03)


Social Security is funded by FICA; Medicare is funded by Medicare tax.


Yes. The "self-employment tax" is actually the Social Security and Medicare tax. If you work for someone else, you would have Social Security and Medicare tax taken out of your paycheck and your employer would match the amounts that were taken out. When you are self-employed, instead of having these amounts taken out of your paycheck, you pay both the employee and the employer share directly to the government.


A paycheck is the money received when working a business. The paycheck will include the amount they have earned after taxes have been taken out.


a percentage of the taxes is taken out for medicare costs


The percentage that is taken out of your paycheck depends on your exemptions and the amount of money you make. Generally, around 15% is taken out of each paycheck and held for taxes, social security and other fees.


Yes. At the same rates as anybody else. (There are some special treatments for children who work as household employees or who work for their own parents.) Of course, if you paycheck is very small and you fill out your W-4 properly, you may not have income taxes taken out because of the size of your check, not because of your age. You would still have Social Security and Medicare taxes taken out.


The Medicare tax is the same for all employees, regardless of age.


Hard for some to believe, but Texas joined the US some while ago. As such, the Federal laws there, like tax and SS or medicare, are the same as the rest of the country.


Working through a financial calculator will help to show the value taken out of your paycheck. This website provides a calculator to view what you should expect can be taken out of your paycheck http://www.moneychimp.com/features/tax_brackets.htm


It isn't taken on Gross Wages..it is taken on Medicare Taxabale Wages...which is a different calculation and different yet from FICA wages.


No; Medicare is paid for by payroll taxes and employers and employees.


The payroll tax for Medicare is Medicare. The payroll tax for Social Security is FICA.


The percentage of taxes taken out of a paycheck depends on the number of exemptions you are allowed to claim. The average amount taken out is 15% or more for deductions including social security and income tax.


On a paycheck, FICA stands for Federal Insurance Contributions Act. FICA is the United States Federal employment tax that is imposed to fund Medicare and Social Security.


Normally child support is taken out at each and every paycheck. Unless your paycheck is so huge that a single one will suffice to cover the whole thing. (not likely, unless you are an NBA player or the like)



I am over 65, and on Medicare. I am also still working, and being paid wages. FICA- Med is still withheld from my paycheck. You should expect that as well.



It is a combination of Disability and Unemployment insurance.


The Medicare tax that is deducted from your paycheck pays for your Medicare Part A insurance, so that you'll be able to use it when you turn 65. Medicare Part A is the hospitaliztion portion of Medicare. Once you turn 65, you'll pay for Medicare Part B that will be automatically deducted from your Social Security check. For 2009, that amount is $96.40/month if you make less than $85000.00 per year. Medicare Part B is the medical/doctor's office portion of your Medicare.


During your working life, you pay Medicare tax out of your paycheck. That tax pays for your Part A Medicare, which is the hospitalization portion of Medicare. Then when you enroll in Medicare, you can purchase Medicare Part B which is the medical/doctor's office portion of Medicare. When you purchase Part B, it is automatically deducted from your Social Security check each month. This amount will normally be $96.40(for 2009) unless you make more than $85,000.00 per year, then you will pay more for the monthly premium.



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