the monthly salaries for december and the year - to - date earnings of the employees of bush consulting…

the monthly salaries for december and the year - to - date earnings of the employees of bush consulting company as of november 30 follow. determine the amount of medicare tax to be withheld from each employees gross pay for december. assume a 1.45 percent medicare tax rate and that all salaries and wages are subject to the tax. (round your final answers to 2 decimal places.) employee no. december salary year - to - date earnings through november 30 medicare taxable earnings - december medicare tax 1.45% 1 $ 9,200 $ 99,300 2 9,300 70,300 3 10,009 123,400 4 9,300 100,300

the monthly salaries for december and the year - to - date earnings of the employees of bush consulting company as of november 30 follow. determine the amount of medicare tax to be withheld from each employees gross pay for december. assume a 1.45 percent medicare tax rate and that all salaries and wages are subject to the tax. (round your final answers to 2 decimal places.) employee no. december salary year - to - date earnings through november 30 medicare taxable earnings - december medicare tax 1.45% 1 $ 9,200 $ 99,300 2 9,300 70,300 3 10,009 123,400 4 9,300 100,300

Answer

Explanation:

Step1: Recall the formula for Medicare tax

Medicare tax = December salary × Medicare tax rate

Step2: Calculate for Employee 1

Medicare tax for Employee 1 = $9200\times0.0145=$133.40$

Step3: Calculate for Employee 2

Medicare tax for Employee 2 = $9300\times0.0145=$134.85$

Step4: Calculate for Employee 3

Medicare tax for Employee 3 = $10009\times0.0145=$145.13$

Step5: Calculate for Employee 4

Medicare tax for Employee 4 = $9300\times0.0145=$134.85$

Answer:

Employee No. Medicare Tax 1.45%
1 $133.40
2 $134.85
3 $145.13
4 $134.85