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Medicare is partially financed by payroll taxes forced by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act of 1954. In the case of employees, the tax is equal to 2.9% of the wages, salaries and other compensation in connection with employment. Until December 31, 1993, the law provided a maximum amount of wages on which the Medicare tax could be imposed each year...

Medicare is partially financed by payroll taxes forced by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act of 1954. In the case of employees, the tax is equal to 2.9% of the wages, salaries and other compensation in connection with employment. Until December 31, 1993, the law provided a maximum amount of wages on which the Medicare tax could be imposed each year...

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