Now turn to the 0.9% Medicare Surtax on earned income…wages and income from self-employment. Singles will owe the levy once total earnings exceed $200,000. Couples…over $250,000. Marrieds filing separately…over $125,000. So for earnings over the thresholds, the effective Medicare tax rate will be 3.8%…the usual 2.9% rate plus and extra 0.9%. This surtax applies only to the employee’s share if Medicare tax. Employers don’t owe it. Employers will withhold the surtax once an employee’s wages exceed $200,000. Employees will then calculate the actual tax due on their 1040s. So marrieds who each make below the $200,000 threshold but expect their total wages to top $200,000 in 2013 should consider having more income tax withheld on their pay.