February 23, 2020

Er, they are both paid into. It would help if you knew the facts.

https://www.irs.gov/taxtopics/tc751

Now, who were you saying doesn’t understand?

Just to be clear: both employee and employee pay into SS and Medicare. SS is currently 6.2% and Medicare is 1.5%, for a total payroll deduction of 7.7% each, or 15.4% for both.

Now, add 6% on each side of that current total (based on the premise that five-fold increase in MFA patients would mean a five-fold increase in the Medicare withholding tax): employees and employers would be taxed 7.5% for Medicare and 6.2% for SS, or a total payroll withholding of 13.7% on each side, or 27.4% total. And that’s in addition to income tax withholding.