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What is the employee's yearly contribution to the U.S. Medicare tax on a salary of [tex]\$40,000[/tex]?

\begin{tabular}{|c|c|c|}
\hline \multicolumn{3}{|c|}{ FICA Taxes } \\
\hline & Social Security & Medicare \\
\hline Total Due: & [tex]12.40\%[/tex] & [tex]2.90\%[/tex] \\
\hline \begin{tabular}{l}
Employer's \\
Responsibility
\end{tabular} & [tex]6.20\%[/tex] & [tex]1.45\%[/tex] \\
\hline \begin{tabular}{l}
Employee's \\
Responsibility
\end{tabular} & [tex]6.20\%[/tex] & [tex]1.45\%[/tex] \\
\hline
\end{tabular}

[tex]\Phi[?][/tex]



Answer :

GinnyAnswer
To determine the employee's yearly contribution to the U.S. Medicare tax on a salary of [tex]$40,000, we need to use the appropriate rate for the employee's part of the Medicare tax. Based on the given tax rates in the provided table: - The employee's responsibility for Medicare tax is \( 1.45\% \). We start by calculating 1.45% of the salary to find the employee's yearly contribution. 1. Convert the percentage to a decimal by dividing by 100: \[ 1.45\% = \frac{1.45}{100} = 0.0145 \] 2. Multiply the salary by this decimal to find the contribution: \[ \text{Medicare contribution} = 40,000 \times 0.0145 \] 3. Performing the multiplication: \[ 40,000 \times 0.0145 = 580 \] Therefore, the employee's yearly contribution to the U.S. Medicare tax on a salary of $[/tex]40,000 is [tex]\(\$580.00\)[/tex].

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