U.S. · Payroll tax forms
Form 941 line 5c, taxable Medicare wages and tips.
Everything subject to Medicare tax, with no wage cap, and how column 2 is figured.
Line 5c, column 1 is all wages, tips, sick pay and taxable fringe benefits that are subject to Medicare tax. Unlike social security wages there is no limit on the amount subject to Medicare tax. The rate is 1.45% each for employer and employee, so column 2 is column 1 times 0.029.
Look up a Form 941 Line 5c item
Result
Form 941 Line 5c at a glance (March 2026 revision)
| Item | Meaning | What the IRS says |
|---|---|---|
| Column 1 | Medicare wages and tips | All wages, tips, sick pay and taxable fringe benefits subject to Medicare tax |
| Cap | None | Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax |
| Rate | 1.45% each | The rate of Medicare tax is 1.45% (0.0145) each for the employer and employee |
| Column 2 | Column 1 x 0.029 | The form multiplies line 5c column 1 by 0.029 |
| Tips | Include all reported tips | Include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45% |
| Sick pay | See line 8 | The line 8 instructions describe an adjustment you may need to make for sick pay |
| Above $200,000 | Also see line 5d | Wages above the $200,000 withholding threshold are also reported on line 5d for the 0.9% Additional Medicare Tax |
Line 5c compared with line 5a
Line 5a stops counting an employee’s wages at the social security wage base ($184,500 for 2026). Line 5c never stops: a high earner’s wages keep appearing on 5c all year. So for businesses with employees above the wage base, line 5c can be larger than line 5a.
Tips
Tips your employees reported to you during the quarter belong on line 5c, even when you could not withhold the 1.45% employee share. Tips on line 5b are the social security counterpart. The instructions send you to section 6 of Pub. 15 for more on tips, and note that allocated tips are not reported on Form 941.
Where the total goes
Column 2 of line 5c is added with the column 2 amounts on lines 5a, 5b and 5d to give line 5e, total social security and Medicare taxes.
Worked example
Ridgeline Design (a made-up employer) paid $75,000 in wages and reported tips during the quarter, all subject to Medicare tax. Line 5c column 1 is $75,000. Column 2 is $75,000 x 0.029 = $2,175, split evenly between employer and employee. Figures are illustrative only.
More pages in this set
Related decoder pages: Form 941 Line 5a, Form 941 Line 5d, Form 941 Line 11.
Sources
- Instructions for Form 941 (Rev. March 2026): the line-by-line and code instructions summarized on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
Edition: Instructions for Form 941 (Rev. March 2026). Line numbers, codes, dollar limits and rates are those printed in that edition and change by year. Names in worked examples are made up.
Frequently asked questions
What goes on Form 941 line 5c?
All wages, tips, sick pay and taxable fringe benefits that are subject to Medicare tax.
Is there a wage cap for Medicare tax on line 5c?
No. The instructions say that, unlike social security wages, there is no limit on the amount of wages subject to Medicare tax.
How is column 2 of line 5c figured?
Multiply column 1 by 0.029, which is the combined 1.45% employer and 1.45% employee Medicare rate.
Do I include tips I could not withhold tax on?
Yes. The instructions say to include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45%.
Where does the extra 0.9% tax go?
Wages above the $200,000 withholding threshold are reported on line 5d, which has its own multiplier of 0.009.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA, an enrolled agent or a payroll professional can confirm what a line or code means for your filing. Everything runs in your browser; nothing you enter is sent anywhere.