Question

What is the amount of Medicare tax that needs to be deducted from an employees pay if they were hired after 4/1/86?

A 6.20
B 3.45
C 1.45
D 7.5

Answer 1

(C) 1.45

Step-by-step explanation:

FICA, the Federal Insurance Contributions Act (FICA) includes both Social Security and Medicare, which is the federal health insurance program for Americans who are 65 and above.

Wages up to $132,900 are taxed 6.2% since 2019 for Social Security, and wages with no limit are taxed at 1.45% for Medicare. The employer removes those amounts and forwards the total to the federal government.