Kristy Dunaway has biweekly gross earnings of $1,750. What are her total Medicare tax withholdings for a whole year? (
http://www.irs.gov/taxtopics/tc751.html
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To calculate Kristy Dunaway's total Medicare tax withholdings for a whole year, we need to determine the amount of Medicare tax withheld from each paycheck and then multiply it by the number of pay periods in a year.
1. Determine the Medicare tax rate: The Medicare tax rate is 1.45% of gross earnings for most employees.
2. Calculate the Medicare tax withheld per paycheck: Since Kristy's earnings are biweekly, we divide her gross earnings by the number of pay periods in a year. There are typically 26 pay periods in a year for biweekly pay.
Medicare tax withheld per paycheck = (Gross Earnings / Number of Pay Periods) * Medicare Tax Rate
Medicare tax withheld per paycheck = ($1,750 / 26) * 0.0145
3. Calculate the total Medicare tax withholdings for a whole year: Multiply the Medicare tax withheld per paycheck by the number of pay periods in a year.
Total Medicare tax withholdings for a whole year = Medicare tax withheld per paycheck * Number of Pay Periods in a Year
Substituting the values into the equation:
Total Medicare tax withholdings for a whole year = (($1,750 / 26) * 0.0145) * 26
Now, let's calculate the result:
Total Medicare tax withholdings for a whole year = ($67.31 * 26)
Total Medicare tax withholdings for a whole year = $1,748.06
Therefore, Kristy Dunaway's total Medicare tax withholdings for a whole year would be $1,748.06.