Lesson 2.4 - Social Security and Medicare Taxes

Front

What is the Medicare tax rate for all taxpayers?

Back

1.45% of earnings, regardless of income level.

Front

What is the Social Security tax rate for employees?

Back

6.2% of earnings.

Front

Is the Medicare tax rate the same for all income levels?

Back

True, every taxpayer pays the same tax rate for Medicare.

Front

What is the combined tax rate for Social Security and Medicare?

Back

7.65% (6.2% for Social Security + 1.45% for Medicare).

Tags

CCSS.7.RP.A.3

Front

If a taxpayer earns $87,425, how much Medicare tax do they owe?

Back

$1,268.

Tags

CCSS.7.RP.A.3

Front

What is the purpose of Social Security taxes?

Back

To fund the Social Security program, which provides retirement, disability, and survivor benefits.

Front

What is the purpose of Medicare taxes?

Back

To fund the Medicare program, which provides health insurance for individuals aged 65 and older and certain younger people with disabilities.

Front

What is the formula to calculate Medicare tax due?

Back

Medicare Tax Due = Gross Income x Medicare Tax Rate.

Tags

CCSS.6.RP.A.3B

Front

What is the formula to calculate Social Security tax due?

Back

Social Security Tax Due = Gross Income x Social Security Tax Rate.

Tags

CCSS.7.RP.A.3

Front

What is the significance of the 1.45% Medicare tax rate?

Back

It is a flat rate applied to all earned income for Medicare funding.

Tags

CCSS.6.RP.A.3C