Based on the payroll information for Romac Electric that follows:
Total gross earnings: $2,462.00
Social Security tax rate: 6.2%
Medicare tax rate 1.45%
State unemployment tax rate 5.4%
Federal unemployment tax rate 0.8%
Find the Medicare Tax Payable (employees' and employer's)
To calculate the Medicare Tax Payable for both employees and employers, we need to determine the amounts for each.
First, we'll find the employees' Medicare tax payable:
Medicare tax rate: 1.45%
Total gross earnings: $2,462.00
Employees' Medicare Tax Payable = Total gross earnings * Medicare tax rate
= $2,462.00 * 0.0145
= $35.74 (rounded to the nearest cent)
The employees' Medicare Tax Payable is $35.74.
Next, we'll find the employers' Medicare tax payable:
Medicare tax rate: 1.45%
Total gross earnings: $2,462.00
Employers' Medicare Tax Payable = Total gross earnings * Medicare tax rate
= $2,462.00 * 0.0145
= $35.74 (rounded to the nearest cent)
The employers' Medicare Tax Payable is also $35.74.