How much Medicare tax would be withheld from an annual salary of $89,000?

How much Medicare tax would be withheld from an annual salary of $89,000?

• A. $1,290.50
• B. $1,800.00
• C. $3,000.00
• D. $2,450.25

Answer: (A)

To determine the amount of Medicare tax withheld from an annual salary of $89,000, it is important to understand how the Medicare tax is calculated. The standard Medicare tax rate is 1.45% on all earned income, with an additional 0.9% tax applied to income over a certain threshold for higher earners. For 2023, the threshold is $200,000 for individuals, which means that the additional tax does not apply here since $89,000 is below that limit. Calculating the Medicare tax for the entire salary involves multiplying the salary by the standard rate. In this case: 1. Calculate 1.45% of $89,000: \( \text{Medicare Tax} = 89,000 \times 0.0145 = 1,290.50 \) This calculation shows that the correct withholding amount from an annual salary of $89,000 for Medicare tax is $1,290.50. This answer is accurate and reflects the current tax structure, making it the correct choice among the provided options. The other choices reflect amounts that would not correspond correctly to the calculation based on the standard Medicare tax rate for the stated salary.

To determine the amount of Medicare tax withheld from an annual salary of $89,000, it is important to understand how the Medicare tax is calculated. The standard Medicare tax rate is 1.45% on all earned income, with an additional 0.9% tax applied to income over a certain threshold for higher earners. For 2023, the threshold is $200,000 for individuals, which means that the additional tax does not apply here since $89,000 is below that limit.

Calculating the Medicare tax for the entire salary involves multiplying the salary by the standard rate. In this case:

1. Calculate 1.45% of $89,000:

( \text{Medicare Tax} = 89,000 \times 0.0145 = 1,290.50 )

This calculation shows that the correct withholding amount from an annual salary of $89,000 for Medicare tax is $1,290.50.

This answer is accurate and reflects the current tax structure, making it the correct choice among the provided options. The other choices reflect amounts that would not correspond correctly to the calculation based on the standard Medicare tax rate for the stated salary.