Question

please make sure to give the correct answer

PSa 4-3 Calculate Medicare Tax For each of the following employees, calculate the Medicare tax for the weekly pay period described: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation

Answer 1

Question - 3

Gross pay = $940

Taxable earnings for Medicare tax to date = $81,600

Medicare tax for the gross pay = $940 × 1.45% = $13.63

Medicare Tax for the taxable earnings to date = $81,600 × 1.45% = $1,183.2

For medicare tax there is no wage limit

Question - 4

Gross pay = $1,840

Taxable earnings for Medicare tax to date = $124,400

Medicare tax for the gross pay = $1,840 × 1.45% = $26.68

Medicare Tax for the taxable earnings to date = $81,600 × 1.45% = $1,803.80

For medicare tax there is no wage limit

If you have any doubts ask in comments section

Do rate the answer