Question

If a worker's gross pay is $750.00 and 1.25 percent of the worker's earnings are withheld for Medicare tax, what dollar amount of Medicare tax is being withheld?

Answer 1

To calculate the dollar amount of Medicare tax being withheld from a worker's gross pay, you need to multiply the gross pay by the Medicare tax rate. In this case, the dollar amount of Medicare tax being withheld is $9.375.

Step-by-step explanation:

To calculate the dollar amount of Medicare tax being withheld from a worker's gross pay, you need to multiply the gross pay by the Medicare tax rate. In this case, the Medicare tax rate is 1.25 percent, which can be written as 0.0125 in decimal form.

So, the dollar amount of Medicare tax being withheld is:

Dollar amount = Gross pay × Medicare tax rate

Dollar amount = $750.00 × 0.0125

Dollar amount = $9.375

Therefore, $9.375 is the dollar amount of Medicare tax being withheld from the worker's gross pay.