How do I figure the amount of cash wages that exceeded $200,000?
You must pay additional Medicare tax on any wages that exceed $200,000 for any ONE employee.
For example: You have 2 household employees. One was paid cash wages of $165,000 in 2025 while the other was paid cash wages of $218,000 in 2025. Since the first employee was paid less than $200,000 during the year, you do not owe any additional Medicare taxes for them. The other employee was paid $18,000 more than the limit of $200,000, so you would enter $18,000 as the excess amount paid. This $18,000 will be subject to additional Medicare taxes.
If you had a third employee who was paid $205,000 during 2025, you would then owe additional taxes on $5,000 (205,000 - 200,000). You would then enter $23,000 as the total excess amount paid (5,000 + 18,000).
For example: You have 2 household employees. One was paid cash wages of $165,000 in 2025 while the other was paid cash wages of $218,000 in 2025. Since the first employee was paid less than $200,000 during the year, you do not owe any additional Medicare taxes for them. The other employee was paid $18,000 more than the limit of $200,000, so you would enter $18,000 as the excess amount paid. This $18,000 will be subject to additional Medicare taxes.
If you had a third employee who was paid $205,000 during 2025, you would then owe additional taxes on $5,000 (205,000 - 200,000). You would then enter $23,000 as the total excess amount paid (5,000 + 18,000).
