Affordable Care Act - Small Biz
How is Additional Medicare Tax paid on the tips?
Answer:
To the extent that tips and other wages exceed $200,000, an employer applies the same withholding rules for Additional Medicare Tax as it does currently for Medicare tax.
An employer withholds Additional Medicare Tax on the employee’s reported tips from wages it pays to the employee.
An employer withholds Additional Medicare Tax on the employee’s reported tips from wages it pays to the employee.