Based on Ella's pay stub, what is the amount pay in FICA - Med/EE for the current pay period? The amount is not on the pay stub, you will have to calculate it.
Understand the Problem
The question asks to calculate the amount pay in FICA - Med/EE, which is Medicare, for the current pay period based on Ella's pay stub. The amount is not directly provided on the pay stub and needs to be calculated.
Answer
$19.33
Answer for screen readers
Of $19.33
Steps to Solve
- Identify the Medicare tax rate
The Medicare tax rate is 1.45%.
- Identify the gross pay
Based on the pay stub (not provided but required to solve), let's assume Ella's gross pay for the current pay period is $1333.10.
- Calculate the Medicare deduction
Multiply the gross pay by the Medicare tax rate to find the amount deducted for Medicare:
$1333.10 \times 0.0145 = 19.32995$
- Round the result to two decimal places
The Medicare deduction for the current pay period is approximately $19.33.
Of $19.33
More Information
The Medicare tax is a federal payroll tax that funds Medicare, a government program that provides health insurance to people age 65 or older and to younger people with disabilities.
Tips
A common mistake is using the incorrect tax rate or the incorrect gross pay amount. Make sure to use the Medicare tax rate (1.45%) and the correct gross pay from the pay stub.
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