Ace the Certified Payroll Pro Test 2025 – Payroll Masters, Your Time to Shine!

Question: 1 / 400

What is the Medicare Tax Withholding Rate?

2.0%

1.0%

1.5%

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.

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