What is the employer's yearly contribution to the U.S. Medicare tax on a salary of $ [ ]?
Answer (2)
The employer's Medicare tax responsibility is 1.45%.
The salary is $65,000.
Multiply the salary by the tax rate: 65 , 000 \t \t × 0.0145 = 942.50 .
The employer's yearly contribution is $942.50 .
Explanation
Understanding the Problem We are given the employer's responsibility for Medicare tax is 1.45% and the salary is $65,000. We need to calculate the employer's yearly contribution to the U.S. Medicare tax.
Calculating the Contribution To find the employer's yearly contribution, we multiply the salary by the employer's Medicare tax responsibility percentage.
Performing the Calculation Employer's yearly contribution = Salary * Employer's Medicare tax responsibility Employer's yearly contribution = $65,000 * 0.0145 Employer's yearly contribution = $942.50
Stating the Final Answer The employer's yearly contribution to the U.S. Medicare tax on a salary of $65,000 is $942.50.
Examples
Understanding payroll taxes is crucial for both employers and employees. For example, knowing how Medicare contributions are calculated helps businesses budget their expenses and ensures they comply with tax laws. Employees also benefit by understanding how these taxes affect their take-home pay and the social benefits they receive. This knowledge is essential for financial planning and responsible citizenship.
The employer's yearly contribution to the U.S. Medicare tax is calculated by multiplying the employee's salary by 1.45%. For a salary of $65,000, this amounts to $942.50. Adjust the salary accordingly to find the specific contribution based on your figures.
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