Question

Question 1

Answer 1

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.