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Employer Withholding: In addition to withholding Medicare tax at 1.45%, employers, beginning in 2013, must withhold an additional 0.9% Medicare tax from wages paid to an employee in excess of $200,000 in a calendar year and continue to withhold it until the end of the calendar year. The 2013 version of Form 941 (Employer’s Quarterly Federal Tax Return) now reflects the expiration of the 2% payroll tax cut that was available in 2011 and 2012 and the start of the new additional 0.9% Medicare Tax imposed on high wage earners. In addition, the IRS indicated there is still time for certain employers to change their 2013 employment tax return filing frequency from the quarterly Form 941 to the annual Form 944, or vice versa. Employers who have been filing Form 941 and believe that their 2013 employment taxes will be $1,000 or less and would like to file Form 944 (Employers Annual Federal Tax Return) instead of Form 941, must contact the IRS by calling (800) 829-4933 by 4/1/13. Employers who wish to file quarterly Form 941, rather than annual Form 944, must do the same.
