WebApr 13, 2024 · The additional tax rate is 0.9% of all Medicare wages, RRTA compensation, and self-employment income above the threshold amounts. For example, John Smith is a single taxpayer with $250,000 in Medicare wages. On top of his normal Medicare tax, John would pay an additional 0.9% on the $50,000 he earned above the threshold amount, or … WebThese refundable tax credits may be applied to the employer's share of Social Security tax (or the comparable Railroad Retirement Tax Act (RRTA) Tier 1 rate) and are increased by the amount of the employer's share of Medicare tax (or the comparable portion of the RRTA Tier 1 rate) imposed on qualified-leave wages. (See EY Tax Alert 2024-0019.)
Where Do Tier 1 & Tier 2 Taxes Go on My 1040? Budgeting
WebApr 13, 2024 · The additional tax rate is 0.9% of all Medicare wages, RRTA compensation, and self-employment income above the threshold amounts. For example, John Smith is a … WebIf you had more than one employer in 2024 and more than $8,239.80 in social security, and/or Tier 1 railroad retirement (RRTA) taxes were withheld, you may be able to claim a … can dogs eat bush baked beans
Chapter 04: Taxable Compensation under the Railroad …
WebFeb 23, 2024 · Tier II Railroad Employee Taxes Tier II withholding taxes pay for an employee's pension. This private pension pays eligible workers an annuity over and above the Tier I benefit. As of 2024, workers pay up to 4.9 percent of their earnings (up to $109,200 ) to fund their annuities. WebFeb 7, 2009 · For employees covered by RRTA tax, you also must report the Tier I and Tier II taxes withheld in box 14 of Form W-2. Label them "Tier I tax" and "Tier II tax." Boxes 3, 4, 5, 6, and 7 apply only to covered social security and Medicare employees and are not to be used to report railroad retirement wages and taxes. WebIn addition, both employees and employers pay tier II taxes which are used to finance railroad retirement benefit payments over and above social security levels. These tier II taxes are based on the ratio of certain asset balances to the sum of benefit payments and administrative expenses. fish sonar app