Question

Andrew earns a gross weekly income of $561.41. Calculate Andrew's Medicare tax to be withheld if the Medicare tax rate is 1.45%.

A) $7.82
B) $8.14
C) $9.05
D) $10.23

Answer 1

Andrew's Medicare tax is calculated by multiplying his gross weekly income of $561.41 by the Medicare tax rate of 1.45%, resulting in a tax amount of approximately $8.14. The correct answer is Option B) $8.14.

Step-by-step explanation:

The question involves calculating the Medicare tax to be withheld from an individual's gross weekly income. Medicare tax is a specific percentage of an employee's earnings that goes towards healthcare for the elderly and is deducted from each paycheck. To calculate Andrew's Medicare tax, we take his gross weekly income of $561.41 and apply the 1.45% Medicare tax rate.

Here's the calculation step by step:

1. Multiply Andrew's gross income by the Medicare tax rate: $561.41 × 0.0145.
2. The resulting figure is the amount of Medicare tax to be withheld from Andrew's weekly pay.

Let's do the math:

$561.41 × 0.0145 = $8.14 (approximately).

Therefore, the correct answer to how much Medicare tax should be withheld from Andrew's weekly income is Option B) $8.14.