Meanwhile, if you earn over $200,000 as a single employee or over $250,000 as a married taxpayer, you are subject to an ADDITIONAL 0.9 percent Medicare tax with the Net Investment Income Tax (NIIT). In other words, the employee now must pay 2.35% of his/her earnings to Medicare beyon...
Image Credit:Jacob Wackerhausen/iStock/Getty Images Employee elective deferrals to a 401k plan are not subject to federal income tax, but Social Security and Medicare taxes still apply. Employer contributions to a 401k plan are not included in taxable income. Tax is assessed on 401k distributions...