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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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Medicare Wages and Tips (W-2)

What are Medicare Wages and Tips (W-2)?

The Medicare Wages and Tips section of the W-2 is compensation that is subject only to Medicare taxes. For example, a 401k plan is not subject to federal and state withholdings, but is subject to Medicare and Social Security taxes. Up until this year Medicare had an annual limit, and was handled like Social Security (except the limit difference).

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