HR Glossary

What is Medicare Tax?

A federal payroll tax of 1.45% each for employer and employee (2.9% total), plus an Additional Medicare Tax of 0.9% on individual wages exceeding $200,000, that funds the Medicare health insurance program for Americans aged 65 and older.

Why it matters in hiring

Medicare Tax comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with M

• Meal Vouchers
• Medicare (Australia)
• Medicare
• MediShield Life (Singapore)
• Mentoring
• Merit Increase
• Microlearning
• Mid-Year Review

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.