An employee with total YTD Medicare wages of $195,456.

Medicare tax withholding consists of the standard 1.45% rate applied to all wages and the 0.9% Additional Medicare Tax applied to wages exceeding $200,000 in a calendar year. In this scenario, the employee’s YTD wages are $195,456.00 and they are receiving a $10,000 bonus, bringing their total annual wages to $205,456.00. First, the standard 1.45% Medicare tax is calculated on the entire $10,000 bonus: $\$10,000 \times 1.45\% = \$145.00$[cite: 1424] . [cite_start]Next, the Additional Medicare Tax (0.9%) applies only to the portion of the bonus that crosses the $200,000 threshold[cite: 1424] . [cite_start]The amount over the threshold is $\$5,456.00$ ($\$205,456 - \$200,000$). The additional withholding is $\$5,456 \times 0.9\% = \$49.10$. Adding these two components together results in a total withholding amount of $\$145.00 + \$49.10 = \$194.10$. It is critical to note that the 0.9% tax is an employee-only withholding and is not matched by the employer.