what is the independent contractors yearly contribution to the u.s. medicare tax on a salary of $65,000?\n|…

what is the independent contractors yearly contribution to the u.s. medicare tax on a salary of $65,000?\n| | social security | medicare |\n|--|--|--| \n| total due: | 12.40% | 2.90% |\n| employers responsibility | 6.20% | 1.45% |\n| employees responsibility | 6.20% | 1.45% |

what is the independent contractors yearly contribution to the u.s. medicare tax on a salary of $65,000?\n| | social security | medicare |\n|--|--|--| \n| total due: | 12.40% | 2.90% |\n| employers responsibility | 6.20% | 1.45% |\n| employees responsibility | 6.20% | 1.45% |

Answer

Explanation:

Step1: Identify the Medicare tax rate for independent contractors

Independent contractors pay the full - amount of FICA taxes. The Medicare tax rate for independent contractors is 2.90% as they are responsible for both the employer and employee portions.

Step2: Calculate the Medicare tax contribution

Multiply the salary by the Medicare tax rate. The formula is $Contribution = Salary\times Tax\ rate$. Given salary = $65000$ and tax rate = 2.90% or 0.029 in decimal form. So, $Contribution=65000\times0.029$. $65000\times0.029 = 1885$

Answer:

$1885$