Opinion

Writer got it wrong on taxes

Posted February 07, 2014 1:01 am

Mr. Barry Fredrick's assertion in the Sept. 13 Daily Herald that "no employment taxes are assessed for any earnings above that figure (the $117,000 maximum amount of earnings subject to the Social Security payroll tax for tax year 2014)" is factually incorrect. The amount of earnings subject to the Medicare payroll tax (1.45 percent) is not capped. Consequently, it applies to all earnings, regardless of the amount.

In addition, Mr. Fredrick conveniently omitted the new Additional Medicare Tax that was included in the Affordable Care Act. This new tax is .9 percent on wages over $200,000 for single filers, wages over $250,000 for joint filers, and wages over $125,000 for persons who are married but filing separately. Like the regular Medicare tax, there is no cap on earnings subject to this tax.

Stephen W. DeFilippis

Wayne

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