"Med EE" on a paycheck stands for "Federal Medicare/Employer-Employee" tax, which is a tax that funds the Medicare Health Insurance program. Every American taxpayer is required to pay the Medicare tax unless they offer a qualified exception. On a pay statement, Medicare is shown as "Fed MED/EE" to designate the employee’s amount of Medicare tax that was withheld. Employers also pay Medicare withholding on behalf of their employees, which does not come out of their pay. Social Security taxes are referred to as OASDI (Old Age Survivor and Disability Insurance) and are shown on a pay statement as "Fed OASDI/EE" for the employee’s withholding amount.