Question

All employers in the U.S. Pay "payroll taxes" on behalf of employees. The Medicare portion of this is 1.45% of pay. If an employee makes $480 in a week, how much does the employer contribute for Medicare?

Answer 1

Answer: $6.96

Explanation:

Weekly earning = $480

Medicare tax rate = 1.45%

1.45% = (1.45/100) = 0.0145

Medicare contribution = Medicare tax rate × weekly earning

Medicare contribution = 0.0145 × $480 Medicare contribution = $6.96

The employees weekly contribution that is apportioned for Medicare is $6.96

Answer 2

Answer:

$7.10 USD

Explanation:

If the Employer is paying 1.48% of the employees paycheck to Medicare on their behalf then in order to calculate the actual amount we must first change the percentage into a decimal by dividing it by 100.

1.48 / 100 = 0.0148

Now that we have the percentage as a decimal we multiply it by the amount that the employee made that week, which in this case is $480

480 * 0.0148 = 7.104

Therefore we can see that $7.10 USD goes to medicate this week.