What is the difference between wages and medicare wages

Box 2: Federal income tax withheld. Box 2 reports the total amount withheld from your paychecks for federal income taxes.

This represents the amount of federal taxes you have paid-in throughout the year. Box 3: Social Security wages. Box 3 reports the total amount of wages subject to the Social Security tax. This limit is called the Social Security wage base. Box 4: Social Security tax withheld. Box 4 reports the total amount of Social Security taxes withheld from your paychecks.

The Social Security tax is a flat tax rate of 6. You will claim the excess Social Security tax withholding as a credit on your Form if applicable. Box 5: Medicare wages and tips. Box 5 reports the amount of wages subject to Medicare taxes. There is no maximum wage base for Medicare taxes. The amount shown in Box 5 may be larger than the amount shown in Box 1. As with a k , retirement savers can enjoy the benefit of tax-deferred savings in a traditional IRA.

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How Medicare Works. Medicare Part D Prescriptions. Skip to main content. Understanding Your W Wages, tips, other compensation: Your total federal taxable gross pay. This can include: Wages, bonuses, and other cash compensation including prizes or awards Non-cash fringe benefits Executive life insurance Imputed income Non-qualified moving expenses Taxable employee business expense reimbursements This does not include: b contributions DCP contributions Medical contributions Health care HCRA and Dependent care DepCare contributions All other pre-tax contributions.

Federal income tax withheld: The total amount of federal income tax that was withheld from your wages, tips, and other compensation. This amount should be equal to 6. Enter a user name or rank.

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