U.S. · Payroll tax forms
Form 941 line 5d, Additional Medicare Tax withholding.
The $200,000 trigger, the employee-only 0.9%, and why there is no employer match.
Line 5d reports wages, tips, sick pay and taxable fringe benefits subject to Additional Medicare Tax withholding. You must begin withholding it in the pay period in which you pay an employee wages in excess of $200,000 and continue each pay period through year end. The tax is 0.9%, employee only: there is no employer share. Column 2 is column 1 times 0.009.
Look up a Form 941 Line 5d item
Result
Form 941 Line 5d at a glance (March 2026 revision)
| Item | Meaning | What the IRS says |
|---|---|---|
| Column 1 | Wages subject to the extra tax | All wages, tips, sick pay and taxable fringe benefits that are subject to Additional Medicare Tax withholding |
| Trigger | $200,000 withholding threshold | Begin withholding in the pay period in which you pay wages in excess of $200,000 to an employee and continue each pay period until the end of the calendar year |
| Who pays | Employee only | Additional Medicare Tax is only imposed on the employee. There is no employer share |
| Wages covered | Medicare wages over the threshold | All wages subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold |
| Tips | Include reported tips once over | Once wages and tips exceed $200,000, include all tips your employees reported during the quarter, even if you were unable to withhold the 0.9% |
| Column 2 | Column 1 x 0.009 | The form multiplies line 5d column 1 by 0.009 |
| Sick pay | See line 8 | The line 8 instructions describe a possible sick pay adjustment |
Threshold is per employee, not per business
The $200,000 test applies to wages you pay each employee in the calendar year. An employee who earns less than that from you never appears on line 5d, however large the payroll is. The instructions tie the withholding duty to the $200,000 wage threshold, not to anything else about the employee.
How it relates to line 5c
Line 5c has no cap, so a high earner’s whole wages appear there. Line 5d picks up the part subject to the extra 0.9%. The instructions for 5d refer to Pub. 15 section 15 and IRS.gov/ADMTfaqs for the detail on what counts as Medicare wages.
Why only the employee
The instructions state plainly that there is no employer share. That is why the multiplier on 5d is 0.009 rather than 0.018, unlike 0.124 on line 5a and 0.029 on line 5c where both sides pay.
Worked example
A made-up employee earned $180,000 in the first three quarters and was paid another $60,000 in the fourth quarter, reaching $240,000 for the year. The $200,000 threshold is crossed during the fourth quarter, so the fourth-quarter pay above $200,000, which is $40,000, is subject to Additional Medicare Tax withholding. Reading the instructions this way, line 5d column 1 is $40,000 and column 2 is $40,000 x 0.009 = $360. This worked example applies the threshold language to simple figures and is illustrative; confirm edge cases with the Form 941 instructions or a payroll professional.
More pages in this set
Related decoder pages: Form 941 Line 5a, Form 941 Line 5c, 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 is Form 941 line 5d?
Wages, tips, sick pay and taxable fringe benefits subject to Additional Medicare Tax withholding, the 0.9% tax on wages above $200,000 per employee.
When do I start withholding Additional Medicare Tax?
In the pay period in which you pay an employee wages in excess of $200,000, and then in each pay period until the end of the calendar year.
Does the employer also pay Additional Medicare Tax?
No. The instructions say Additional Medicare Tax is only imposed on the employee and there is no employer share.
How is column 2 of line 5d figured?
Multiply column 1 by 0.009, the 0.9% Additional Medicare Tax rate.
Do I include tips I could not withhold on?
Yes. Once wages and tips exceed the $200,000 threshold, include all tips your employees reported during the quarter, even if you were unable to withhold the 0.9%.
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.