Kristy Dunaway has biweekly gross earnings of $1,750. What are her total Medicare tax withholdings for a whole year
To determine Kristy Dunaway's total Medicare tax withholdings for a whole year, we need to know the Medicare tax rate and calculate the total amount withheld over 52 weeks.
Medicare tax is a flat rate of 1.45% of an individual's wages. The calculation steps are as follows:
Step 1: Calculate the biweekly Medicare tax withholding:
Biweekly Gross Earnings = $1,750
Medicare Tax Rate = 1.45%
Medicare tax withholding = Biweekly Gross Earnings * Medicare Tax Rate
Medicare tax withholding = $1,750 * 0.0145 = $25.38 (rounded to the nearest cent)
Step 2: Calculate the annual Medicare tax withholding:
Annual Medicare tax withholding = Biweekly Medicare tax withholding * Number of pay periods in a year
To calculate the number of pay periods in a year, we divide 52 weeks by 2 since Kristy is paid biweekly:
Number of pay periods in a year = 52 weeks / 2 = 26
Annual Medicare tax withholding = $25.38 * 26 = $659.88 (rounded to the nearest cent)
Therefore, Kristy Dunaway's total Medicare tax withholdings for a whole year are approximately $659.88.