Based on the payroll information for Romac Electric that follows:

Question

Total gross earnings: $2,462.00
Social Security tax rate: 6.2%
Medicare tax rate 1.45%
State unemployment tax rate 5.4%
Federal unemployment tax rate 0.8%
Find the Medicare Tax Payable (employees' and employer's)

Answer 1

To calculate the Medicare Tax Payable for both employees and employers, we need to determine the amounts for each.

First, we'll find the employees' Medicare tax payable:
Medicare tax rate: 1.45%
Total gross earnings: $2,462.00

Employees' Medicare Tax Payable = Total gross earnings * Medicare tax rate
= $2,462.00 * 0.0145
= $35.74 (rounded to the nearest cent)

The employees' Medicare Tax Payable is $35.74.

Next, we'll find the employers' Medicare tax payable:
Medicare tax rate: 1.45%
Total gross earnings: $2,462.00

Employers' Medicare Tax Payable = Total gross earnings * Medicare tax rate
= $2,462.00 * 0.0145
= $35.74 (rounded to the nearest cent)

The employers' Medicare Tax Payable is also $35.74.