Question

Need help please, No direct answer please explain how to solve.

Mason worked 21 hours at the bicycle shop at an hourly rate of $9.50. How much Medicare tax will be deducted from his paycheck this week? (Medicare tax is a fixed tax of 1.45% of a person’s gross pay.)

A.
$199.50

B.
$8.38

C.
$2.89

D.
$196.61

Answer 1

Mason worked 21 hours at a rate of 9.50

21×9.50 = gross pay

gross pay is 199.50

but we need to subtract 1.45%

196.61 is what he is left with.

199.50-196.61= your answer

C. 2.89 is deducted for medicare