Answer: The answer is $21.75
Explanation:
The rules says that employees will pay 1.45%, while the employers will pay 1.45% total is 2.9%
The employers will calculate 1.45% of the wages as withholding tax and pay it to the tax authority.
Therefore to calculate the Medicare tax payable for the pay period we use the formula
Wages × Medicare tax rate
Since wages = $1,500.00, Medicare tax rate = 1.45% ( 1.45÷100 = 0.0145)
1,500.00 × 0.0145
= 21.75
Therefore the Medicare tax payable for the pay period is $21.75
