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If an employee is Full Medicare Pickup, the breakdown on the employee's Earnings Register will show as:

Applicable gross is calculated as follows:

Gross $5070.00 - Section 125's $136.81 + $72.58 Pickup = Applicable Gross $5,005.77 x 2.9% = $145.16

$72.58 + $72.58 = $145.16 = Employer Amount

Employee portion Amount paid by board is $72.58