Final answer:
To calculate the amount paid towards Medicare, multiply the gross pay by the Medicare tax rate of 1.45%. This figure represents the individual's contribution to Medicare for the pay period. The exact amount will vary depending on the individual's earnings.
Step-by-step explanation:
The main answer to how much a person paid towards Medicare in a pay period can be determined by looking at the percentage of their earnings that is dedicated to Medicare. According to the provided information, employees have 1.45% of their paycheck deducted for Medicare. As an example, if an individual earns $1000 in a pay period, the calculation for the amount paid to Medicare would be 1.45% of $1000, which is $14.50.Explanation in more than 100 words: To fully understand this, we consider that Medicare is a healthcare program primarily for the elderly, funded through payroll taxes. The Medicare tax rate is set at 2.9%, with the employee and employer each contributing half of this percentage. Despite each appearing to pay half, some economists argue that employees effectively pay the entire amount through reduced wages. To calculate the exact Medicare contribution from an individual paycheck, one would multiply the gross pay for that period by 1.45%.Conclusion: The calculation is straightforward once you know the individual's gross earnings for the pay period and the percentage designated for Medicare. Simply apply the 1.45% rate to the gross earnings to find the amount paid toward Medicare.