On a $50,000 bonus paid to Trevor, how much Additional Medicare Tax will his employer withhold?

Study for the 43-Hour Federal Qualifying Education Test. Engage with flashcards and multiple-choice questions, each with hints and explanations. Prepare thoroughly for your exam!

To determine the amount of Additional Medicare Tax that an employer will withhold on a $50,000 bonus, it is essential to understand how this tax functions. The Additional Medicare Tax is applied to individuals with wages exceeding certain thresholds, specifically an additional 0.9% on income above $200,000 for single filers, and $250,000 for married couples filing jointly. However, this tax applies only to the income that exceeds those thresholds.

In this case, if Trevor's total income, including his bonus, does not exceed those thresholds, then there would typically be no Additional Medicare Tax due. However, if we assume his total income is already over the threshold, and the bonus is subject to this Additional Medicare Tax, the employer would withhold a certain amount.

For example, for a bonus of $50,000, if that entire amount is subject to the Additional Medicare Tax, the withholding would be calculated as 0.9% of that amount, leading to a total of $450. This would not be an option in your provided choices, indicating that these other options likely represent incorrect assessments or misunderstand the application or calculation of the tax.

It's crucial to clarify that the Additional Medicare Tax is not calculated on a proportion of the

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy