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Question 1

Colin is an employee who has gross earnings of $50,000 per year. He wants to know the total amount that will be deducted

from his paycheck for the Medicare portion of the FICA tax during the course of the year. Calculate this value.

Round your answer to the nearest cent.

Answer :

geniusjim

Answer: The value deducted from Colin's paycheck for Medicare portion of FICA tax will be $725.

Step-by-step explanation:

The FICA (Federal Insurance Contributions Act) tax is a mandatory deduction from employee paychecks on gross yearly income according to U.S law. It consists of two portions

1- Social Security tax (at the rate of 6.2% as of 2019)

2-Medicare tax (at the rate of 1.45% as of 2019)

Colin has gross earnings of $50,000 per annum

Medicare tax amount at the rate of 1.45% = 1.45 % of 50,000

                                                                     = 1.45 x 50,000 /100

                                                                     = $725

The value deducted from Colin's paycheck for Medicare portion of FICA tax will be 725 dollars and 0 cents.

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