FAQ 952: Additional Medicare Tax rate of 0.9%

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

Solution: 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 http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax 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.