Michael Miller is paid twice a month and had total gross earnings as of 10/15 of $116,800. His gross earnings for the period ending 10/31 were $6,000. If social security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings, how much medicare tax will be paid by Michael and how much will be paid by his employer for the period ending 10/31?

Respuesta :

Answer:

1.medicare tax paid by Michael=0

2.medicare tax paid by employer=1780.5

Step-by-step explanation:

total earning of michael as of 10/15=$116,800

earning of michael as of 10/31=$6,000

Total Earning as of 10/31=$116,800+$6,000=$122,800

security tax=6.25%

6.25%of  $122,800 is

security tax=[tex]\frac{6.25}{100}[/tex]×122,800

security tax=7675 dollar

earning of michael after deducting security tax=122800-7675=115125

Medicare tax will be 1.45% on $122,700 earning or more

since michael earning after payment of security tax is 115125

that's why michael will pay zero medicare tax

medicare tax paid by michael =0

while his  employer will pay medicare tax of 1.45% 0f 12,800

medicare tax paid by employer=[tex]\frac{1.45}{100}[/tex]×122,800

medicare tax paid by employer=1780.5



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