 In this presentation, we will take a look at the Medicare calculation. When considering Medicare, we're talking about the Federal Insurance Contribution Act. It's a FICA type tax. FICA Federal Insurance Contribution can be broken out into the Social Security component and the Medicare component. We're concentrating here on the Medicare component. Now, like the other FICA component, like Social Security, it has these two layers to it. It's got the employer layer and the employee layer. This is going to be the most confusing component or part or thing to understand within the Medicare taxes, because we can't confuse these two. Once again, we could confuse the 1.45 as if that's the only thing being paid or who's paying these taxes. And the idea of this tax is similar to the 401k plan. Again, that 401k plan is not the same thing as a Medicare plan or a Social Security plan or a FICA plan in terms of the benefits and the payouts. But in terms of the paying into the program, you can think of it as a similar type of setup, meaning the employer is mandated to put in 1.45 percent, which you'll notice is a lot smaller. If we if we move the decimal two places, it's 0.0145. And the employer is mandated to match that, in essence, putting in another 1.45. So what does that mean then? This Medicare is going to be a payroll tax that will take it out. But remember from the employer standpoint, the employee portion is not really a payroll is not really a payroll tax to the employer. It's just payroll. It's part of the payroll. So in other words, the employee is going to earn whatever they earn. And of their earnings, they're going to have to take out 1.45 percent, which we will take from them and just do them the service of taking out their earnings and paying it not to them, but to the government or mandated to do that. But in essence, we're just taking the employee wages that they've earned and allocating it to someone else that they owe. Whereas the employer portion is a payroll tax to the employer, meaning it's not coming out of gross pay. It's coming out of our, you know, the employer's checking account in addition to the employee tax. So in this, in essence, this is really the payroll tax to the employer. This is really kind of a payroll tax to the employee. The employer sees it as just part of wages. It's something that's got to be owed to the employee. Now again, from an economic standpoint, you can, there's arguments in terms of what's really the effect of taxes, who's really paying the taxes, if you think about markets and whatnot. But from a logistic standpoint, from a record keeping standpoint, the accountant sees this as just the employees, part of the employee's wages. It's not a separate tax. We just pay it out to the employee for the employee. This will be a separate tax. And it's a tax that's not being called on the corporate income. It's being based on the employee wages. So this is going to be broken out typically as payroll taxes on, on recording when we record the income statement. So that's usually the confusing piece. So note that really the tax that's being paid between the employer and the employee, the total tax being received or paid for Medicare is the sum of both of these taxes on the earnings of the employee. It's often missing. People often think that it's only 1.45. This is what you'll see on the pay step actually coming out of the pay step. But it's really twice that because the employer is putting in a portion as well. Because it's the same portion, it can be confused. And it can be confusing in terms of who's paying it or how the calculation is working. The calculation will be based on the gross profit for the employee, each employee. So then there's no cap as there is with the social security type of payment. And part of the reason for that, and just if, if we were to speculate on part of the reason, if you're trying to find reasons for the tax code, it can't be difficult sometimes. But if we were to speculate, the, the Medicare is more of a pure safety net program now. So in other words, you have to qualify to get the benefits for net, for Medicare at the, at the end, whereas social security, you get the benefits just for paying into the program. So social security is kind of morphing into more of a kind of a retirement type of plan, in some sense, from the federal level, whereas the Medicare really is, is paying in it's still really a safety net program to help people that are having problems and need the Medicare assistance. And because of that, it's, it's also less costly, 1.45% is a lot less than the social security rate, which was, was a 6.2. Now I know that it's really, it's really twice that it would be 12.4 for social security and 2.9 for, for Medicare. But again, it's substantially less. So there's no cap and we don't deal with that, that cap issue. It's the flat tax. So the actual calculation for both these components is pretty straightforward. Whatever the gross wages, we just take a flat tax a lot easier to do than the federal income tax. We do have an additional 9.9% big difference. So the 0.009 addition for wages over 200,000. And this is another kind of component that's, that's clearly a debatable component as to, as to whether that should change or how that should change. So this, this is likely more likely of a cap that could change over time, possibly than possibly the rates, which could change over time too, but probably not as often.