We currently load MOOP as a single variable and also have separate variables for health insurance premiums and medical expenses. This structure leads to double-counting and inconsistencies in our calculations. We also omit Medicare Part B premiums from the CPS. Proposed Solution We need to modify ...
Calculate Medicare tax by multiplying gross wages (minus any pre-tax deductions) by 1.45%. Deduct the total amount of Medicare taxes from the employee’s gross pay. 4. Subtract after-tax payroll deductions Subtract any other relevant post-tax deductions from gross pay, such as Roth contributions...