The Medicare tax rate remains at 1.45%. The additional Medicare tax rate of 0.9 percent, which began in 2013, will continue to be imposed on wages exceeding $200,000, meaning all earned wages in excess of $200,000 will be taxed at a rate of 2.35% for Medicare.

ACLI, as the employer, is required to withhold the Medicare Surtax regardless of the employee’s filing status or wages paid by another employer. ACLI cannot honor a request to cease withholding the Medicare Surtax if it is required to withhold it. If, due to your filing staus or wages paid by another employer, too much tax is withheld, you will claim a credit for the additional amount withheld against the total tax liability shown on your individual income tax return (Form 1040).