FAQ 952: Additional Medicare Tax rate of 0.9%


Is the Budget software updated to accommodate the new additional tax included in the Affordable Healthcare Act?


The system calculation should not include this law change as it does not affect the self-employment 164(f) deduction since this is not a matched by Employer tax (such as the FICA and other medicare taxes).

See IRS FAQ 34

34. Is there an "employer match" for Additional Medicare Tax (as there is with the regular Medicare tax)?

No. There is no employer match for Additional Medicare Tax.