Question

Jack Saloman's gross weekly pay is $498. What amount is deducted from his pay this week for Medicare which is taxed at 1.45 percent?

A) $4.49
B) $7.21
C) $9.67
D) $12.56

Answer 1

Jack Saloman's weekly Medicare deduction is calculated by multiplying his gross weekly pay of $498 by the Medicare tax rate of 1.45%, resulting in a deduction of $7.21.

Step-by-step explanation:

Jack Saloman's gross weekly pay of $498 is subject to Medicare tax at a rate of 1.45%. To calculate the Medicare deduction, we multiply the gross amount by the Medicare tax rate:

Medicare deduction = Gross pay × Medicare tax rate
Medicare deduction = $498 × 0.0145
Medicare deduction = $7.221

Therefore, the amount deducted from Jack Saloman's pay this week for Medicare is $7.21 (rounded to the nearest cent), which corresponds to option B.