Certified Payroll Professional Practice Exam 2025 – Your All-in-One Guide to Exam Success

Question: 1 / 400

What is the Medicare Wage Base with respect to withholding?

No limit

The correct answer is A: No limit. This is because there is no specific limit on the wage base when it comes to withholding Medicare taxes. Medicare tax is a flat rate that applies to all earned income without a maximum limit, unlike Social Security tax which has a wage base limit that changes annually. Therefore, regardless of how much an employee earns, Medicare tax will continue to be withheld without any cap.

Options B, C, and D are incorrect because they provide specific dollar amounts as Medicare wage base limits, which is not the case in reality.

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$100,000

$117,000

$150,000

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