Understanding Hospital Insurance or HI The HI portion of the FICA tax is withheld on total earnings. Additionally, as part of the Affordable Care Act, for employees whose wages exceed $200,000. Employers will be required to withhold the additional 0.9% but not match the additional tax. As noted, the HI stands for "hospital insurance" and refers to a type of trust fund. The HI Trust Fund is used to pay part of inpatient hospital care, skilled nursing care and other services for eligible disabled and elderly people. So, for employees whose earnings exceed $200,000, employers must withhold the Additional Medicare Tax as follows. Hospital Example has earnings to date of $192,750 and current earnings of $32,125. Employer's Liability Employer's HI liability ($32,125 * 1.45%) Withholding on behalf of Hospital Example Standard HI withholding ($22,125 * 1.45%) Additional HI Withholding (K$192,750 + $32,125): $200,000] * 0.996) $465.81 $465.81 $223.88 a souree: hwww.irs.gaxnewsreenywhat is the additiona medicareax:iingEstimated Tax. Employers must withhoid this tax from aes ar cempensation whan they pay mployes more than $200,000 in a candar year Complete the following: Another name for the Hospital Insurance trust fund is Medicare. 1. 2. 3. 4. The employer HI rate is in decimal form or in percentage The Supplemental HI rate is in decimal form The HI wages cap is $200,000. Compute the following Note: Round each to the nearest cent and if an amount is zero, enter "O" Angelina's current earnings are $3,498.00. Year to date she has earned $63,600 or in percentage Angelina's 2018 HI withholding, for this pay period, is: b. c. Faye's current earnings are $6,754. Year to date she has earned $122,800 Faye's 2018 HI withholding, for this pay period, is: d. e. Sophia's current earnings are $15,675. Year to date she has eaned $209,000 Sophia's 2018 HI withholding, for this pay period, is: And her supplemental withholding, for this pay period, is: $