IRS Issues Proposed Regs on Rules for Additional Medicare Tax

On December 3, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance to employers and individuals on the implementation of the additional hospital insurance tax (additional Medicare tax) under the Affordable Care Act.  Specifically, the proposed regs provide rules for the withholding, computation, reporting, and payment of additional Medicare tax on wages, self-employment income, and Railroad Retirement Tax Act compensation. The proposed regs also provide rules for when and how employers may make an interest-free adjustment to correct an overpayment or an underpayment of additional Medicare tax and how employers and employees may claim refunds for overpayments of the tax.

Comments are due by March 5, 2013.

Monday, December 3, 2012