What is the Medicare tax rate for both the employer and employee?

The Medicare tax rate for both the employer and employee is indeed 1.45%. This tax is used to fund the Medicare program, which provides health insurance for individuals aged 65 and older and certain younger individuals with disabilities.

It's important to note that this rate applies to all covered wages, and there is no income limit for Medicare taxes; all earned income is subject to this tax. Additionally, high-income earners are subject to an additional 0.9% Medicare tax on wages that exceed certain thresholds, but this does not affect the base rate for most employees and employers.

The other options provided reflect different types of taxes; for instance, the options reflecting 12.4% and 6.2% pertain to Social Security taxes, which do have wage limits. In contrast, the Medicare tax is specifically designed to fund healthcare coverage without an upper limit, which is why the correct answer highlights the 1.45% rate specifically attributed to Medicare.