To find the independent contractor's yearly contribution to the U.S. Medicare tax on a salary of [tex]$65,000, we'll follow these steps:
1. Identify the Medicare tax rate for the total contribution:
The table shows that the Medicare tax rate is 2.9%.
2. Calculate the Medicare tax contribution:
- Step 1: We multiply the salary by the Medicare tax rate (2.9%).
Thus, we have:
\[
\text{Medicare Contribution} = \text{Salary} \times \text{Medicare Tax Rate}
\]
- Step 2: Plug in the given values:
\[
\text{Medicare Contribution} = 65,000 \text{ USD} \times 0.029
\]
3. Determine the resulting numerical value:
The Medicare tax contribution for a salary of $[/tex]65,000 at a rate of 2.9% is [tex]$1,885.0.
So, the independent contractor's yearly contribution to the U.S. Medicare tax on a salary of $[/tex]65,000 is $1,885.0.
