If an employee earns $112,000 per year, what is the TOTAL amount of Medicare that both employer and employee is to pay in?

To determine the total Medicare tax that both the employee and employer are required to pay on an annual salary of $112,000, we first need to understand the Medicare tax rate, which is currently set at 1.45% for both employees and employers. Therefore, the total Medicare tax rate when combining both contributions is 2.9% (1.45% from the employee and 1.45% from the employer).

Calculating the Medicare tax involves the following steps:

1. Calculate the total Medicare tax rate:

• Employee contribution: 1.45%

• Employer contribution: 1.45%

• Total contribution: 1.45% + 1.45% = 2.9%

2. Convert the percentage into decimal form:

• 2.9% = 0.029

3. Apply this rate to the employee's annual salary of $112,000:

• Total Medicare tax = $112,000 * 0.029 = $3,248

Thus, the total Medicare tax that both the employee and employer contribute amounts to $3,248, making this the correct answer. The other amounts provided do not align with the accurate calculation of Medicare taxes based on