Certified Payroll Professional Practice Exam

What is the Medicare Tax Withholding Rate?

1. 2.0%

2. 1.0%

3. 1.5%

4. 1.45%

The correct answer is: 1.45%

The Medicare Tax Withholding rate is 1.45%. This is the correct answer because the Medicare Tax is a percentage of an employee's gross wages that is withheld by the employer to contribute to funding the Medicare program. The current Medicare Tax rate for employees is 1.45% of their wages, and an additional 1.45% is typically contributed by the employer, making the total Medicare Tax rate 2.9%. Therefore, option D, 1.45%, is the accurate percentage for Medicare Tax withholding.