FY 2009 Medicare Insurance Subsidy

This subsidy is applied by the Statewide Payroll System when the employee is only Medicare Insurance taxable and pays the employee share of Medicare Insurance.  It applies to Federal Civil Service Employees on the University of Maryland Payroll and new members of the State Police Retirement System and the Baltimore City Fire and Police system on the Regular Payroll who entered State employment on and after April 1, 1986.  The employee and employer shares of Medicare Insurance Tax are applied to every dollar of Medicare Insurance taxable wages.

The employee share of Medicare Insurance Tax is exactly matched by the employer.  The employee share of Medicare Insurance Tax will remain at 1.45% for the balance of calendar year 2008 and will be applied to all Medicare Insurance taxable wages.