Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is

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The Medicare tax rate is 1.45% of gross wages. For monthly gross wages of $2,500, the monthly Medicare tax is $2,500 * 1.45% = $36.25. For one quarter (3 months), this amounts to $36.25 * 3 = $108.75. Since this is an amount that the employer owes to the government, it is recorded as a credit in the Medicare Tax Payable account.

Assuming a Medicare Tax Rate of 1