To determine the employee's yearly contribution to the U.S. Medicare tax on a salary of \[tex]$40,000, we need to focus on the Medicare tax rate for employees.
The relevant information from the table is:
- Employee's Responsibility for Medicare: 1.45%
Using this rate, we can calculate the Medicare tax contribution as follows:
1. Identify the salary: \$[/tex]40,000.
2. Determine the tax rate: 1.45%.
3. Calculate the contribution by multiplying the salary by the tax rate:
[tex]\[
\text{Medicare tax contribution} = \text{Salary} \times \text{Tax Rate}
\][/tex]
[tex]\[
\text{Medicare tax contribution} = \$40,000 \times 0.0145
\][/tex]
4. Perform the multiplication:
[tex]\[
\text{Medicare tax contribution} = 580.0
\][/tex]
Therefore, the employee's yearly contribution to the U.S. Medicare tax on a salary of \[tex]$40,000 is \$[/tex]580.00.
