What is the total Medicare tax rate for an employee who is subject to both standard Medicare tax and Additional Medicare tax? Answer:   A.    2.35%     B.    2.45%     C.    6.2%     D.    7.65%   2. Prior to the current period, Jamie Pratt, whose tax return filing status is single, had earnings subject to Medicare tax of $248,000. This week, Jamie has gross earnings of $3,700. His employer will withhold $_______ in total Medicare tax.   3. What type of institution might offer a 403(b) plan to its employees? Answer:   A.    A small business     B.    Private colleges     C.    Fortune 500 companies     D.    Public education institutions and certain tax-exempt organizations     E.    All of these options

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7E
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1. What is the total Medicare tax rate for an employee who is subject to both standard Medicare tax and Additional Medicare tax?



Answer:  
A.  
 2.35%
 
 
B.  
 2.45%
 
 
C.  
 6.2%
 
 
D.  
 7.65%

 

2. Prior to the current period, Jamie Pratt, whose tax return filing status is single, had earnings subject to Medicare tax of $248,000. This week, Jamie has gross earnings of $3,700. His employer will withhold $_______ in total Medicare tax.



 
3. What type of institution might offer a 403(b) plan to its employees?



Answer:  
A.  
 A small business
 
 
B.  
 Private colleges
 
 
C.  
 Fortune 500 companies
 
 
D.  
 Public education institutions and certain tax-exempt organizations
 
 
E.  
 All of these options
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