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Medicare Tax Definition
What Is Medicare Tax?
Medicare tax, also acknowledged as “hospital insurance policy tax,” is a federal work tax that funds a portion of the Medicare insurance application. Like Social Safety tax, Medicare tax is withheld from an employee’s paycheck or paid out as a self-work tax.
Medicare tax pays for Section A of the Medicare method, which consists of hospital insurance plan for people age 65 or more mature and men and women who have particular disabilities or medical conditions. Medicare clinic insurance policy covers clinic visits, hospice and nursing house care, and some home healthcare.
Vital Takeaways
- Medicare taxes
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