• The 0.9 percent additional Medicare tax, which applies to individuals to whom the sum of their wages received with respect to employment and their self-employment income exceeds $125,000 to $250,000. “Employers must withhold this additional Medicare tax from wages more than $200,000 regardless of status,” Rosen said. “There could be situations where an employee may need to pay in more tax by year’s end.”

“Under the new law, it’s more important that tax planning be on a multiyear basis. We need to be thinking about opportunities to reduce clients’ effective tax rates over several years rather than considering current-year impacts in isolation,” Horning said.

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