Question

for each of the following wages, determine the medicare tax that would be withheld.
i. $23,660
ii. $89,000
iii. $166,090
a. i. $343.07
ii. $1,290.50
iii. $2,408.31
b. i. $3,430.70
ii. $12,905.00
iii. $24,083.05
c. i. $146.70
ii. $551.80
iii. $1,029.76
d. i. $1,466.92
ii. $5,518.00
iii. $10,297.58

Explanation:

Medicare tax rate is 1.45% (or 0.0145) of the wages. We calculate the tax for each wage by multiplying the wage by 0.0145.

Step1: Calculate for $23,660

Multiply $23,660 by 0.0145.
$23,660 × 0.0145 = $343.07

Step2: Calculate for $89,000

Multiply $89,000 by 0.0145.
$89,000 × 0.0145 = $1,290.50

Step3: Calculate for $166,090

Multiply $166,090 by 0.0145.
$166,090 × 0.0145 = $2,408.305 ≈ $2,408.31

Answer:

a.
i. $343.07
ii. $1,290.50
iii. $2,408.31