Box 5 — Medicare wages and tips
Wages subject to Medicare tax. There is no Medicare wage base—Box 5 can exceed Boxes 1 and 3.
What it means
Medicare wages often match Social Security wages until the Social Security wage base is hit; above that, Box 5 keeps rising. Additional Medicare Tax (0.9%) may apply when Medicare wages exceed $200,000 single / $250,000 joint, reported on Form 8959.
Related glossary: medicare tax