I worked for the same company for 15 years. We were just bought out so I essentially became a new employee of the company that bought us on July 1st. In the past I would stop getting Medicare deducted from my pay around October. Will it still go on now that I switched employers?

Thanks

AtlantaTaxExpert

I do not see how you could get the Medicare deduction stopped, as the 1.45% Medicare tax applies to every dollar you earn.

Now, the 6.2% Social Security stops once you hit the $90K ceiling. It may not stop due to your new employer, but you should get the over-withholding back when you file your 2006 tax return.