Question

use the percentage method of withholding to find federal withholding tax, a 6.2% fica rate to find fica tax, and 1.45% to find medicare tax for the following employee. then find the net pay for the employee. the filing status is listed after the name. assume that no employee has earned over $180,000 so far this year.
employee
derma, m filing separately
weekly earnings
$3425
click the icon to view the table for the percentage method for income tax withholding.
the federal withholding tax is $ 631.24
(round to the nearest cent as needed.)
the fica tax is $ 212.35
(round to the nearest cent as needed.)
the medicare tax is $
(round to the nearest cent as needed.)
table: percentage method for income tax withholding, weekly payroll period, with sections for married filing jointly, single or married filing separately, head of household, showing adjusted wage ranges, amounts to withhold, percentages, and excess wage amounts

Explanation:

Step1: Identify the formula for Medicare tax

The Medicare tax is calculated as a percentage of the weekly earnings. The rate given is 1.45%. So the formula is: Medicare tax = Weekly Earnings × 1.45%

Step2: Substitute the weekly earnings

The weekly earnings for the employee is $3425. So we calculate $3425 × 0.0145 (since 1.45% = 0.0145 in decimal form).
$3425 × 0.0145 = 3425 × \frac{145}{10000} = \frac{3425×145}{10000}$
First, calculate 3425 × 145: 3425×100 = 342500, 3425×40 = 137000, 3425×5 = 17125. Adding these together: 342500 + 137000 = 479500; 479500 + 17125 = 496625.
Then divide by 10000: $\frac{496625}{10000} = 49.6625$

Step3: Round to the nearest cent

Rounding 49.6625 to the nearest cent gives $49.66.

Answer:

$49.66