Question

For each of the following wages, determine the Medicare tax that would be withheld:

i. $23,660
ii. $89,000
iii. $166,090

Multiple-choice response:
a. i. $343.07, ii. $1,290.50, iii. $2,408.31
b. i. $3,430.70, ii. $12,905.00, iii. $24,083.05
c. i. $146.70, ii. $551.80, iii. $1,029.76
d. i. $1,466.92, ii. $5,518.00, iii. $10,297.58

Answer 1

Using the Medicare tax rate of 1.45%, the Medicare tax withheld for wages of $23,660; $89,000; and $166,090 are $343.07, $1,290.50, and $2,408.31 respectively. The correct answer is option (a).

Step-by-step explanation:

To determine the Medicare tax that would be withheld from each of the following wages, we apply the Medicare tax rate of 1.45% to the gross annual income. The calculations are as follows:

• For a wage of $23,660: Medicare tax = 1.45% of $23,660 = $343.07.
• For a wage of $89,000: Medicare tax = 1.45% of $89,000 = $1,290.50.
• For a wage of $166,090: Medicare tax = 1.45% of $166,090 = $2,408.31.

Therefore, the correct multiple-choice response is option (a): i. $343.07, ii. $1,290.50, iii. $2,408.31.