Question

On 9 of 20

Robert receives a salary of $60,000 per year, or $2,500 semi-monthly. How
much does his employer pay for his Medicare tax each pay period?
A. $46
B. $51
C. $36
D. $41

Answer 1

Robert's semi-monthly salary is $2,500. This means he earns $5,000 per month. The Medicare tax rate is 1.45%, so his employer pays 1.45% of his salary for Medicare tax. This is equal to $72.50 per month. Since he is paid semi-monthly, his employer pays $36.25 for his Medicare tax each pay period. Therefore, the answer is C. $36.