Question

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.

1:Paul Robinson's filing status is married filing jointly, and he has earned gross pay of $2,700. Each period he makes a 403(b) contribution of 7% of gross pay . His current year taxable earnings for Medicare tax, to date, are $268,000.

Total Medicare Tax = $

2:Stephen Belcher's filing status is single, and he has earned gross pay of $1,820. Each period he makes a 401(k) contribution of 7% of gross pay and contributes 2.5% of gross pay to a dependent care flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $198,650.

Total Medicare Tax = $

3:Sidney Black's filing status is head of household, and he has earned gross pay of $920. Each period he contributes $70 to a flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $94,600.

Total Medicare Tax = $

4:Bill Clay's filing status is married filing separately, and he has earned gross pay of $1,840. Each period he makes a 403(b) contribution of 9% of gross pay and contributes $60 to a cafeteria plan. His current year taxable earnings for Medicare tax, to date, are $124,400.

Total Medicare Tax = $

Answer 1

The Medicare tax is equal to 1.45% of the gross wages.

1
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Medicare Tax	$ 2,700.00	1.45%	$          39.15

2
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Medicare Tax	$ 1,820.00	1.45%	$          26.39

3
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Medicare Tax	$     920.00	1.45%	$          13.34

4
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Medicare Tax	$ 1,840.00	1.45%	$          26.68

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