Chapter 11, Problem 6DQ

To determine

Concept Introduction:

There are a number of taxes which are charged from both employer and employer for the welfare and maintenance of the society.

Medicare tax is one of them. Medicare tax can be defined as a payroll tax that applies to all income and supports the funds that authorities manage so that the employees can use it when they become eligible for the use of this Medicare tax.

To determine:

1. The current Medicare tax rate

2. The maximum level of salary and wages at which is applied.