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1. Prior to the current period, Maxwell Reiner had earnings of $131,000 subject to Medicare tax. During the current week, Maxwell has gross earnings of
1. Prior to the current period, Maxwell Reiner had earnings of $131,000 subject to Medicare tax. During the current week, Maxwell has gross earnings of $3,500. Assuming that he is not subject to Additional Medicare Tax, his total Medicare tax for the week is $________.
Social Security is 6.2% on 137,700 of wages Medicare is 1.45% Once earners hit the earnings threshold, it is an additional .9% Medicare tax on all wages exceeding wage threshold.
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