To determine the employer's yearly contribution to the U.S. Medicare tax on a salary of [tex]$65,000, follow these steps:
1. Identify the Medicare tax rate for the employer: According to the table, the employer's responsibility for the Medicare tax is 1.45%.
2. Convert the percentage to a decimal: The Medicare tax rate of 1.45% needs to be converted to a decimal for calculation purposes. To do this, divide 1.45 by 100:
\[
1.45\% = \frac{1.45}{100} = 0.0145
\]
3. Calculate the employer's contribution based on the salary: Multiply the salary by the decimal form of the Medicare tax rate:
\[
\text{Employer's Medicare Contribution} = \$[/tex]65,000 \times 0.0145
\]
4. Calculate the product:
[tex]\[
\$65,000 \times 0.0145 = \$942.5
\][/tex]
Therefore, the employer's yearly contribution to the U.S. Medicare tax on a salary of [tex]$65,000 is \$[/tex]942.50.
