Medical Billing and Coding Online

2013 Medicare Premiums, Coverage, Deductibles, Costs

<div dir="ltr" style="text-align: justify;" trbidi="on"><a href="http://www.medicalbillingcodings.org/2013/01/medicare-premiums-deductibles-coverage-costs-changes.html" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img alt="2013 Medicare Premiums, Deductibles and Costs Changes" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHtRqqp6H5kiz9T2BYwNoj7OhexTRVhZc7O6QYxdaMjvv6emc_mPVqbMgDbYVJQBf-e7yu4CbXofpPHJUm3yn4r7R9H9YgrNI0B7AiNDTqAV_Rmh5jdpeKs56wpL0Mb2fGhmc83DfJ7ZQ/s320/Medicare-Tax-New.jpeg" width="320" /></a> View 2013 Medicare Premiums, Deductibles and Costs Changes.<br />
<br />
<strong>Medicare Costs</strong> will be on an increase this year taking a bigger bite on senior’s wallet. <br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/medicare-premiums-deductibles-coverage-costs-changes.html">Medicare Fee Schedule</a> and <a href="http://www.medicalbillingcodings.org/2013/01/Medicare-fee-schedule-eligibility-changes.html">Medicare Eligibility Changes</a> in 2013 are set to be experienced in <strong>Medicare part A</strong> and <strong>Medicare Part B premiums</strong> deductibles and the coinsurance paid by beneficiaries. The premiums paid on Part A and part B of the Medicare insurance is the ones that have been slightly changed.<br />
<br />
<strong>2013 Medicare Premiums</strong> are set to rise by $5 a month; this is less than what was anticipated but set to eat up to a quarter of a typical retiree’s cost of living. This will mainly affect social security payments. Deductibles premiums for Medicare part B will increase while premiums for Part A will experience a drop.<br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/medicare-premiums-deductibles-coverage-costs-changes.html"><h2>Medicare Part A Premium 2013</h2></a> Medicare Part A 2013 mostly covers inpatient hospitals, skilled nursing facilities as well as home healthcare. Medicare Part A Premium 2013 are set to drop from $451 to $441. <br />
<br />
<h3>Medicare Part A Premium</h3>Higher income earners under this plan may pay more. Medicare Part A also comes with a late enrollment penalty payment. The Medicare Part A Premiums will be set to go higher by up to 10% requiring one to pay for them for up to twice the number of years one ought to have paid for it.<br />
<br />
<h3>Medicare Part A Covers</h3>When undergoing blood transfusion you would not be required to pay for the blood as the hospital gets the blood from a blood bank at no cost. You will only be required to pay for the first 3 units if the hospital has to buy the blood for you. Hospice care will come with a price tag of $O with no deductibles; copayment of up to $5 per prescription for pain and symptom management will be required for outpatients. Medical Part A will not cover for any board and room in instances when one gets hospice care at home or in another medical facility<br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/medicare-premiums-deductibles-coverage-costs-changes.html"><h2>Medicare Premium Part B 2013</h2></a> Medicare Premium Part B 2013 covers physicians, outpatient hospitals, and home health services as well as durable medical equipment. Its premium for 2013 will essentially stand at $104.90 up from 99.90 in 2012 which is a 5% increase. <br />
<br />
<h3>Medicare Premium Part B Deductibles</h3>The deductibles for part B will also increase from $ 140 to $147. You will also be required to pay a penalty if you do not sign up when eligible.<br />
<br />
<h3>Medicare Part B Coverage Details 2013</h3>You will be required to pay $147 for your part B deductibles this year. More payment in premiums will come about if one has an adjusted gross income from the previous 2 years on a certain amount. You will not required to pay for blood if the hospital gets it at no cost; You will only be required to pay for Copayment and blood handling services on every unit of blood you get. Under this plan, clinical laboratory and home health services come at no cost<br />
<br />
One will be required to pay for 20% of Medicare approved for most doctor services; this will mostly affect outpatient therapy and durable medical equipment. For outpatient mental health services, you will be required to cater for 20% of the Medicare approved amount. This mostly affects instances when you visit a doctor or other health care provider for monitoring or diagnosis of the condition.<br />
<br />
Partial hospitalization for mental health services will require one to pay 40% of the Medicare approved amount on each of the service one gets. Payment for outpatient hospital services will stand at 20% of the Medicare approved amount of the doctor services.<br />
<br />
The amount of premiums that one will be required for health services will most depend on the amount of income earns. Higher incomes will be charged more. You can also check out increased <a href="http://www.medicalbillingcodings.org/2013/01/medicare-tax-rate-increase-changes.html">Medicare Tax Rate</a> and Additional Changes in year 2013.<br />
<br />
</div>

2013 Medicare Premiums, Coverage, Deductibles, Costs

View 2013 Medicare Premiums, Deductibles and Costs Changes. Medicare Costs will be on an increase this year taking a bigger bite on senior’s wallet. Medicare Fee Schedule and Medicare Eligibility Ch…

2013 Medicaid Fee Schedule and Eligibility changes

<div dir="ltr" style="text-align: justify;" trbidi="on"><a href="http://www.medicalbillingcodings.org/2013/01/medicaid-fee-schedule-eligibility-changes.html" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img alt="2013 Medicaid Fee Schedule and Eligibility changes" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaQ5kPpfataDTIKzlB3Jgd4xXpn9PvVYZX_lezEg3lttsvTLxMnT-RmcojaoFDN7djQb9qvT8Ll_V2zC7mOTN-hF9ifBMmqzphlKlRAcsYBzIXwuv0VkhPFL0HTFrzyUz3xk4sONSeRqXF/s1600/FL_Medicaid.jpg" width="256" /></a> Find Medicaid Fee Schedule and Eligibility changes update for 2013.<br />
<br />
Medicaid Changes are aimed at strengthening the American health care system by increasing the income physicians take home and expanding Medicaid through Preventive care. This will focus in bolstering children Health insurance program while also launching streamlined Medicare billing.<br />
<br />
Thus, it is all in blue print that the health care system in the US is bound to experience lots of drastic changes in terms of payments. In the following we are going to present a summery of 2013 Medicaid Fee Schedule and Eligibility changes:<br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/medicaid-fee-schedule-eligibility-changes.html"><h2>2013 Medicaid Fee Schedule and Eligibility changes</h2></a> Payment to hospitals under the new plan is to be given a boost of 4.6billion up to 48.1 billion in a year. Under the new plan, payments are guaranteed to reduce by up to 2% for any hospitals that do not meet the outpatient quality reporting requirements. OPPS future payments will be based on geometric mean costs rather than the average median costs. This is mainly geared at ensuring that patients are accorded the highest quality of health services at minimal costs. Changes expected in Medicaid include:<br />
<ol style="text-align: left;"><li><h3>OPPS Payment Adjustments</h3>A continuation of 7.1% adjustment on OPPS payment is expected to certain rural hospitals and sole community hospitals. This is only applicable for services paid under OPPS excluding any drugs and biological devices paid under Pass through payment Policy.<br />
<br />
</li>
<li><h3>Marginal Cost Payment Adjustments</h3>There will also be an adjustment on any payments that cover any marginal cost of hospitals. Payment adjustment will also be experienced on the use of non enriched Uranium sources of Radio isotopes mainly used in medical imaging.<br />
<br />
</li>
<li><h3>Coverage for separately Payable Drugs and Devices in New Plan</h3>Under the new plan, there will be payment that covers all the acquisition of separately payable drugs and biological devices that do not have the statutory pass through status.<br />
<br />
</li>
<li><h3>Inpatient Rehabilitation Facility Quality Reporting Program</h3>There was also an adoption of measures for inpatient rehabilitation facility quality reporting Program. The new plan will affect payments for 2014 as the adoption of new pressure ulcer measures. Face to face encounter will also be required for payment for any durable medical equipment. This applies for things like prosthetic devices orthotics and prosthetics.<br />
<br />
</li>
<li><h3>New Medicaid Rates for 2013 and 2014</h3>The new changes require Medicaid agencies to pay the new Medicare rates in effect from 2013 and 2014. This payment requirement applies to all primary care services paid on a free for service basis. The federal government is mandated to cater for any incrementing payments. The new changes are also aimed at physicians due to their role in providing direct service to patients.<br />
<br />
</li>
<li><h3>More Coverage in Medicare new Plan</h3>The new plan comes with its pros. People with poorly performing plans will be notified in advance of better plans so that they can switch. Medicare in 2013 will also cover things such as screenings for depression obesity and sexually transmitted diseases. The new changes are also meant to ensure that new plans are able to cover for behavioural therapy and cardiovascular diseases. Value based payment that mostly affects physicians is another aspect that will come into effect. This deals with the adjustment of payments made to a physician group under the new Medicare physician fee schedule.<br />
<br />
</li>
<li><h3>Incentives for Physicians with more experience and low costs</h3>The CMS planned to apply the new plan under medical groups of 25 or more but changed the plan to include 100 or more physicians. Under this new modifier, physicians with more experience and higher quality services at low costs will be paid more. Physicians under this plan will have the role of determining how the modifier gets calculated.  This will be done through PQRS (Physicians Quality Reporting System) which is a voluntary program that allows physicians to report on the quality of service that they offer to patients.<br />
<br />
</li>
<li><h3>Non Random Prepayment Review Regulations</h3>Another evident change is the removal of regulations that regard the termination of non random prepayment review. Medical review refers to the procedures carried out by medical contractors so as to ensure that billed items or services are covered and are even-handed. Medical contractors will terminate the non random prepayment medical review when all medical billing requirements are met.</li>
</ol><div style="text-align:center"><a href="http://www.medicalbillingcodings.org/2013/01/medicaid-fee-schedule-eligibility-changes.html" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnTbG8DeHtzcPasJPDm72mnbSq-Q7y4oxjMfNslPd2dWHfq_v4qYncwKZ3AI2IIlL3Gi2ZzsolmwG_ohkZPuX-LOUzL0lCd60K7hZspp7BixXSVSEmTUxZkA7Af-g_oKkBA8nx88ZDu2o1/s540/medicare+and+medicaid+2-22-13.PNG" /></a></div></div>

2013 Medicaid Fee Schedule and Eligibility changes

Find Medicaid Fee Schedule and Eligibility changes update for 2013. Medicaid Changes are aimed at strengthening the American health care system by increasing the income physicians take home and expan…

ICD 10 Compliance Date, Deadlines and Delay

The Deadline for ICD 10 Compliance Date is expected to some delays and extension. ICD 10 deadline had been set for 1st October 2013 but the US departments of health and human services opted to postpone the deadline by one year till 1st October of 2014. The main reason behind this sudden change in thought is mainly attributed to the extensive pressure that was forthcoming from various health industry groups including the American Medical Association.<br />
<br />
<div class="separator" style="float:right;text-align: right;"><a href="http://www.medicalbillingcodings.org/2013/01/icd10-compliancedate-delay-deadline.html"><img alt="ICD 10 Compliance Date, Deadlines and Delay" border="0" height="370" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBGCXtRy4QvdEJ-bunW58oAECfOlm6yV2w74sQIdB3kcAHfO6MN3lhpxzXDw2u96oCqIp7WPZy6TJE-kuCYdFSl1YJqYNZXJSHLdiTl521Cz1uPVr0VIjj7QTMCS5RNZr1wZfLk6qysa7t/s1600/ICD-10+Weight.jpg" width="234" /></a></div>ICD-10 (International classification of diseases) essentially represents procedure codes that are widely used in medical billing as well as for research and other purposes. ICD 10 was essentially developed by the Office of E-health Standards and services (OESS) as part of its fundamental roles which was essentially delegated by the HHS. One of its main roles is to develop and adopt an electronic health care transaction system under the Health Insurance Portability and Accountability act (HIPAA).<br />
<br />
The ICD-10 diagnostic coding system has been implemented all over the world except in the US. The change in compliance date is part of a lengthy process of trying to adopt a new and unique health plan identifier (HPID). The change from ICD-9 to ICD 10 will mainly is characterized by the increment in the number of codes from the normal 18000 to 140,000.<br />
<br />
ICD-9 is essentially out of room because its classification is organized scientifically with each three category only having 10 subcategories. Over the past decades there has been a wide revelation and development in the medical industry thus calling for new and meaningful codes.<br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/icd10-compliancedate-delay-deadline.html"><h2>ICD 10 Compliance Date Extension</h2></a><br />
The extension of the deadline also comes with the establishment of a unique health plan identifier (HPID) that will  fall under the insurance Portability and Accountability act of 1966 (HIPAA). This new plan will be of benefit to doctors, hospitals and insurance companies in the identification of patients and guaranteeing payment of treatment carried out. Various medical processes will be totally automated thereby enabling faster delivery of services and retrieval of information, management of bills and other transactions will essentially be made easier and faster.<br />
<br />
Current health plans and third party administrators are mainly identified from a wide range of different identifiers that do not come with a standard format thus making the process to be quite lengthy and tiresome. Time consuming problems is essentially the order of the day with ICD-9; mis-routing of transactions and rejection of bills are some of the other common cons attributed with this older plan.<br />
<br />
ICD 10 is mainly considered as the red tape that will essentially revolutionize the health care system thus making it to be more efficient able to solve lots of problems through various processes carried out. With this kind of plans doctors will be accorded lots of time in caring their services on patients rather than feeling extraneous unnecessary forms.<br />
<br />
<a href="http://www.medicalbillingcodings.org/2013/01/icd10-compliancedate-delay-deadline.html"><h2>ICD 10 Deadline Delays</h2></a><br />
The delay is mainly aimed at giving developer’s, providers and insurer’s ample time to prepare and test their new systems so as to ensure proper and smooth transition. The delay is “an attempt to give people some ability to re-prioritize,” because providers and insurers also must comply with multiple reform law requirements such as implementation of electronic health records, Kaveh Safavi, an Accenture managing director, told The Wall Street Journal Health Blog. <br />
<br />
The older plan ICD-9 does not incorporate some procedures and diagnosis of which with the implementation of the new plan ICD-10 this would be a thing of the past. With the new codes for various medical procedures and diagnosis specify of diagnosis will be hastened while accuracy in reimbursement for medical services will be guaranteed. Fraud detection which has been a bugging problem will also be hastened while also able to respond perfectly to historical claims.<br />
 <br />
All covered entities by 1st October 2014 will be required to have integrated the new plan so as to ensure smooth transition over the entire health industry. Failure of any industry to integrate the new change will lead to significant negative impacts especially in the decline of claims.

ICD 10 Compliance Date, Deadlines and Delay

2013 Medicare Tax Rate Increase and Additional Changes

<div dir="ltr" style="text-align: justify;" trbidi="on"><a href="http://www.medicalbillingcodings.org/2013/01/medicare-tax-rate-increase-changes.html" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img alt="Medicare Tax Rate Increase and Additional Changes" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHtRqqp6H5kiz9T2BYwNoj7OhexTRVhZc7O6QYxdaMjvv6emc_mPVqbMgDbYVJQBf-e7yu4CbXofpPHJUm3yn4r7R9H9YgrNI0B7AiNDTqAV_Rmh5jdpeKs56wpL0Mb2fGhmc83DfJ7ZQ/s320/Medicare-Tax-New.jpeg" width="320" /></a>Find Medicare Tax Rate Increase and Additional Tax Changes for 2013 along with Employee, Employer and Payroll Service Provider FAQs.<br />
<br />
Get ready for the Additional Medicare Tax raise coming in 2013. Here are some questions and answers that provide employers and payroll service providers information that will help them as they prepare to implement the Additional Medicare Tax which goes into effect in 2013. The Additional Medicare Tax applies to individuals wages, other compensation, and self-employment income over certain thresholds. The employers are responsible for withholding the tax on wages and other compensation in certain circumstances.<br />
<br />
The <a href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax" target="_blank" rel="nofollow">Internal Revenue Service</a> has prepared these questions and answers to assist employers and payroll service providers in adapting systems and processes that may be impacted:<br />
<h3>Basic FAQs</h3><ol><li><b>When does Additional Medicare Tax start?</b><br />
Additional Medicare Tax goes into effect for taxable years beginning after December 31, 2012.</li>
<li><b>What is the rate of Additional Medicare Tax?</b><br />
The rate is 0.9 percent.</li>
<li><b>When are individuals liable for Additional Medicare Tax?</b><br />
An individual is liable for Additional Medicare Tax if the individual’s wages, other compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed the threshold amount for the individual’s filing status:<br />
<table border="1" cellpadding="5" cellspacing="0"><thead>
<tr><th id="tbl88id0_0" scope="col">Filing Status</th><th id="tbl88id0_1" scope="col">Threshold Amount</th></tr>
</thead><tbody>
<tr><td headers="tbl88id0_0">Married filing jointly</td><td headers="tbl88id0_1">$250,000</td></tr>
<tr><td headers="tbl88id0_0">Married filing separately</td><td headers="tbl88id0_1">$125,000</td></tr>
<tr><td headers="tbl88id0_0">Single</td><td headers="tbl88id0_1">$200,000</td></tr>
<tr><td headers="tbl88id0_0">Head of household (with qualifying person)</td><td headers="tbl88id0_1">$200,000</td></tr>
<tr><td headers="tbl88id0_0">Qualifying widow(er) with dependent child</td><td headers="tbl88id0_1">$200,000</td></tr>
</tbody></table></li>
<li><b>What wages are subject to Additional Medicare Tax?</b><br />
All wages that are currently subject to Medicare Tax are subject to Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual’s filing status. For more information on what wages are subject to Medicare Tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15, (Circular E), Employer’s Tax Guide.</li>
<li><b>What Railroad Retirement Tax Act (RRTA) compensation is subject to Additional Medicare Tax?</b><br />
All RRTA compensation that is currently subject to Medicare Tax is subject to additional Medicare Tax if it is paid in excess of the applicable threshold for an individual’s filing status.</li>
<li><b>Are wages paid to employees that are nonresident aliens or U.S. citizens living abroad subject to Additional Medicare Tax withholding?</b><br />
There are no special rules for nonresident aliens and U.S. citizens living abroad for purposes of this provision. Wages earned by such individuals that are subject to Medicare tax will be subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold.</li></ol><a href="http://www.medicalbillingcodings.org/2013/01/medicare-tax-rate-increase-changes.html"><h2>Medicare Tax Rate Employer and Payroll Service Provider FAQs</h2></a><br />
<ol><li value="7"><b>When must an employer withhold Additional Medicare Tax?</b><br />
The statute requires an employer to withhold Additional Medicare Tax on wages or compensation it pays to an employee in excess of $200,000 in a calendar year. An employer has this withholding obligation even though an employee may not be liable for the Additional Medicare Tax because, for example, the employee’s wages or other compensation together with that of his or her spouse (when filing a joint return) does not exceed the $250,000 liability threshold. (See Q&A-3.) Any withheld Additional Medicare Tax will be credited against the total tax liability shown on the individual’s income tax return (Form 1040).</li>
<li><b>Is an employer required to notify an employee when it begins withholding Additional Medicare Tax?</b><br />
No. There is no requirement that an employer notify its employee.</li>
<li><b>Is there an “employer match” for Additional Medicare Tax (as there is with the regular Medicare tax)? </b><br />
No. There is no employer match for Additional Medicare Tax.</li>
<li><b>May an employee request additional withholding specifically for Additional Medicare Tax?</b><br />
No. However, an employee who anticipates liability for Additional Medicare Tax may request that his or her employer withhold an additional amount of income tax withholding on Form W-4. This additional income tax withholding will be applied against all taxes shown on the individual’s income tax return (Form 1040), including any Additional Medicare Tax liability.</li>
<li><b>If an employee’s annual Medicare wages are expected to be over $200,000, will an employer withhold Additional Medicare Tax from the beginning of the year or only after Medicare wages are actually paid in excess of $200,000 year-to-date?</b><br />
An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages in excess of $200,000 to an employee.</li>
<li><b>If a single payment of wages to an employee exceeds the $200,000 withholding threshold, will an employer withhold Additional Medicare Tax on the entire payment?</b><br />
No. Additional Medicare Tax withholding applies only to wages paid to an employee that are in excess of $200,000 in a calendar year. Withholding rules for this tax are different than the income tax withholding rules for supplemental wages in excess of $1,000,000 as explained in Publication 15, section 7.<br />
Example: M received $180,000 in wages through November 30, 2013. On December 1, 2013, M’s employer paid her a bonus of $50,000. M’s employer is required to withhold Additional Medicare Tax on $30,000 of the $50,000 bonus and may not withhold Additional Medicare Tax on the other $20,000. M’s employer also must withhold Additional Medicare Tax on any other wages paid in December 2013.</li>
<li><b>What should an employer do if an employee receives wages or other compensation that is not paid in money, such as fringe benefits, from which Additional Medicare Tax cannot be withheld?</b><br />
If an employee receives wages from an employer in excess of $200,000 and the wages include noncash fringe benefits, the employer calculates wages for purposes of withholding Additional Medicare Tax in the same way that it calculates wages for withholding the existing Medicare tax. The employer is required to withhold Additional Medicare Tax on total wages, including noncash fringe benefits, in excess of $200,000. The value of noncash fringe benefits must be included in wages and the employer must withhold the applicable Additional Medicare Tax and deposit the tax under the rules for employment tax withholding and deposits that apply to noncash fringe benefits. The same rules apply for compensation subject to Railroad Retirement Tax Act (RRTA) taxes. Additional information on how to withhold tax on noncash fringe benefits is available in Publication 15 (Circular E), section 5, and Publication 15-B, section 4.</li>
<li><b>If an employee will receive tips and wages in excess of $200,000 in the calendar year, how is Additional Medicare Tax paid on the tips?</b><br />
To the extent that tips and wages exceed $200,000, an employer applies the same withholding rules for Additional Medicare Tax as it does currently for Medicare tax. An employer withholds Additional Medicare Tax on the employee’s reported tips from wages it pays to the employee. If the employee does not receive enough wages for the employer to withhold all the taxes that the employee owes, including Additional Medicare Tax, the employee may give the employer money to pay the rest of the taxes. The employee may need to make estimated tax payments to cover any shortage. More information about this process of giving an employer money for taxes is available in Publication 531, Reporting Tip Income.</li>
<li><b>If a former employee receives group-term life insurance coverage in excess of $50,000 and the resulting income is in excess of $200,000, how does an employer report Additional Medicare Tax on this?</b><br />
The imputed cost of coverage in excess of $50,000 is subject to social security and Medicare taxes, and to the extent that in combination with other wages it exceeds $200,000, it is also subject to Additional Medicare Tax. When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes and Additional Medicare Tax on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. An employer should report this income as wages on Form 941, Employer’s QUARTERLY Federal Tax Return (or the employer’s applicable employment tax return), and make a current period adjustment to reflect any uncollected employee social security, Medicare, or Additional Medicare Tax on group-term life insurance. However, unlike the uncollected portion of the regular (1.45%) Medicare tax, an employer may not report the uncollected Additional Medicare Tax in box 12 of Form W-2 with code N.</li>
<li><b>For employees who receive third-party sick pay, will wages paid by an employer and by the third party need to be aggregated to determine whether the $200,000 withholding threshold has been met?</b><br />
Yes. Wages paid by an employer and by the third party need to be aggregated to determine whether the $200,000 withholding threshold has been met. The same rules that currently assign responsibility for sick pay reporting and payment of Medicare tax based on which party is treated as the employer (i.e., the employer, the employer’s agent, or a third party that is not the employer’s agent) apply also to Additional Medicare Tax. For more information on sick pay, see Publication 15-A, Employer’s Supplemental Tax Guide, and Notice 91-26, 1991-2 C.B. 619.</li>
<li><b>If an employee has amounts deferred under a nonqualified deferred compensation (NQDC) plan, when is the nonqualified deferred compensation taken into account as wages for purposes of withholding Additional Medicare Tax? </b><br />
An employer calculates wages for purposes of withholding Additional Medicare Tax from nonqualified deferred compensation (NQDC) in the same way that it calculates wages for withholding the existing Medicare tax from NQDC. Thus, if an employee has amounts deferred under a nonqualified deferred compensation plan and the NQDC is taken into account as wages for FICA tax purposes under the special timing rule described in §31.3121(v)(2)-1(a)(2) of the Employment Tax Regulations, the NQDC would likewise be taken into account under the special timing rule for purposes of determining an employer’s obligation to withhold Additional Medicare Tax. Additional information about the special timing rules for NQDC is in Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration.</li>
<li><b>Should an employer combine an employee’s wages for services performed for all of its subsidiaries if it has an employee who performs services for more than one subsidiary in its company, but the payroll is paid through one of the subsidiaries?</b><br />
An employer is required to withhold Additional Medicare Tax on wages paid to an employee in excess of $200,000 in a calendar year. When an employee is performing services for multiple subsidiaries of a company, and each subsidiary is an employer of the employee with regard to the services the employee performs for that subsidiary, the wages paid by the payor on behalf of each subsidiary should be combined only if the payor is a common paymaster. Publication 15-A, section 7 contains more information on common paymasters. The wages are not combined for purposes of the $200,000 withholding threshold if the payor is not a common paymaster.</li>
<li><b>Should an agent combine an employee’s wages for purposes of determining whether wages are paid in excess of the $200,000 withholding threshold, if it is an agent for two employers (with approved Forms 2678, Employer Appointment of Agent), and it pays wages to an employee that performs services for both employers?</b><br />
No. An agent with approved Forms 2678 acting as an agent for two employers should not combine the wages paid on behalf of the separate employers in determining whether to withhold Additional Medicare Tax.</li>
<li><b>Will the IRS be changing Form 941 or any other forms to be completed by employers and payroll service providers?</b><br />
Yes. The IRS plans to release drafts of revised forms, including Forms 941, 943, and the tax return schemas for the F94X series of returns.</li>
</ol></div>

2013 Medicare Tax Rate Increase and Additional Changes

Find Medicare Tax Rate Increase and Additional Tax Changes for 2013 along with Employee, Employer and Payroll Service Provider FAQs. Get ready for the Additional Medicare Tax raise coming in 2013. Her…

Load more posts

2013 Medicare Premiums, Coverage, Deductibles, Costs

2013 Medicaid Fee Schedule and Eligibility changes

ICD 10 Compliance Date, Deadlines and Delay

2013 Medicare Tax Rate Increase and Additional Changes

Popular

Recent

Archive