Question

please make sure to give the correct answer

PSa 4-3 Calculate Medicare Tax For each of the following employees, calculate the Medicare tax for the weekly pay period described: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation Paul Robinson's filing status is married filing jointly, and he has earned gross pay of $2,850. Each period he makes a 403(b) contribution of 6.5% of gross pay. His current year taxable earnings for Medicare tax, to date, are $271,000. Total Medicare Tax = $ Stephen Belcher's filing status is single, and he has earned gross pay of $1,800. Each period he makes a 401(k) contribution of 5% of gross pay and contributes 1.5% of gross pay to a dependent care flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $198.750 Total Medicare Tax = $

Answer 1

Part 1

Taxable Earnings = 2850.00

Medicare Tax = $2850.00 * 2.35% = $66.98

Medicare Tax rate = 1.45% (regular) + 0.9% (additional for taxable earnings above $200000) = 2.35%

Part 2

Gross pay = $1800

Flexible spending account = 1800*1.5% = 27

Taxable Earnings for Medicare tax = Taxable Earnings for Medicare Tax - Flexible spending account = 1800-27 = 1773

Medicare Tax = 1773*1.45%= $25.71