Respuesta :
Answer:
Medicare tax to be paid by Michael =$0
Medicare tax to be paid by the employer = $1780.6
Step-by-step explanation:
Total gross earnings as of 10/15 = $116800
Gross earnings for the period ending 10/31 = $6000
Since Michael Miller is paid twice a month, the gross earnings for the period ending 10/15 = $6000
Gross earnings for the month of October = 6000+6000
                                       = $12000
Total gross earnings as of 10/31 = 116800 + 6000
                           = $122800
Security tax rate = 6.25%
So, security tax to be paid by Michael = 6.25% of 122800
= [tex]\frac{6.25}{100}[/tex]*122800
= 0.0625*122800
= $7675
Earnings of Michael after deducting the security tax= 122800 - 7675
= $115125
The medicare tax rate will be 1.45% on $122,700 earning or more.
As Michael's earning after the payment of security tax is $115125, so Michael does not need to pay any medicare tax.
So, Â Medicare tax to be paid by Michael =$0
Medicare tax to be paid by the employer = 1.45% of 122,800
= [tex]\frac{1.45}{100}[/tex]*122800
= 0.0145*122800
= $1780.6
