What is the employee's yearly contribution to the U.S. Medicare tax on a salary of [tex]\$40,000[/tex]?

\begin{tabular}{|l|c|c|}
\hline \multicolumn{3}{|c|}{ FICA Taxes } \\
\hline & Social Security & Medicare \\
\hline Total Due: & 12.40\% & 2.90\% \\
\hline \begin{tabular}{l}
Employer's \\
Responsibility
\end{tabular} & 6.20\% & 1.45\% \\
\hline \begin{tabular}{l}
Employee's \\
Responsibility
\end{tabular} & 6.20\% & 1.45\% \\
\hline
\end{tabular}

[tex]\$[?][/tex]



Answer :

To determine the employee's yearly contribution to the U.S. Medicare tax on a salary of \[tex]$40,000, we need to focus on the Medicare tax rate for employees. The relevant information from the table is: - Employee's Responsibility for Medicare: 1.45% Using this rate, we can calculate the Medicare tax contribution as follows: 1. Identify the salary: \$[/tex]40,000.

2. Determine the tax rate: 1.45%.

3. Calculate the contribution by multiplying the salary by the tax rate:
[tex]\[ \text{Medicare tax contribution} = \text{Salary} \times \text{Tax Rate} \][/tex]
[tex]\[ \text{Medicare tax contribution} = \$40,000 \times 0.0145 \][/tex]

4. Perform the multiplication:
[tex]\[ \text{Medicare tax contribution} = 580.0 \][/tex]

Therefore, the employee's yearly contribution to the U.S. Medicare tax on a salary of \[tex]$40,000 is \$[/tex]580.00.