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September 10, 2022
Question

Employee medicare went up 62.07% in September. why?

  • September 10, 2022
  • 1 reply
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Starting in September our Medicare for employee increased 62.07%.  It used to be 1.45% and now it is 2.35% for employee.  It's still 1.45% for employer.  Why did QBO change the rate and how can I change it back?

1 reply

September 10, 2022

I can help you provide insights into your medicare rate concerns, pam109.

 

The Medicare tax is subject to Additional Medicare Tax Withholding if paid more than the $200,000 withholding threshold. 

 

The tax has a rate of 1.45% w/ the Additional Medicare tax of 0.9%. That's why the overall tax rate is 2.35%. For additional information, check the following article: Social Security and Medicare Withholding Rates.

 

Do you need help running payroll reports? This article provides several reports you can read to take a closer look at your business and employees for a complete guide: Run payroll reports in QuickBooks Online

 

I've got your back if you need more help with payroll tax rates or any related concerns in QBO.