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

Answer 1

Medicare tax is 1.45% of wages (no wage base limit for these amounts). Calculations:

i. 23,660 × 0.0145 = 343.07
ii. 89,000 × 0.0145 = 1,290.50
iii. 166,090 × 0.0145 = 2,408.31

Answer: a.