In December 2010,Bob Cratchit worked for Scrooge & Marley and earned $1,000.Federal income tax withholding is 10%.The FICA rate is 6.2% and the Medicare tax is 1.45%.How much cash will Scrooge & Marley pay the government for Medicare tax because of Bob's December earnings?
A)$62.00
B)$124.00
C)$14.50
D)$29.00

Question

Quizplus · Accepted Answer

The Medicare tax is 1.45% of Bob's earnings. Therefore, $1,000 * 1.45% = $14.50.

In December 2010,Bob Cratchit Worked for Scrooge & Marley and Earned