What role do payroll taxes play in funding Medicare?

Payroll taxes play a critical role in funding Medicare by directly contributing to the program's financial resources alongside Social Security. Specifically, the Federal Insurance Contributions Act (FICA) mandates that a portion of both employee and employer wages is withheld as payroll taxes. A certain percentage of these taxes is allocated to the Medicare Trust Fund, which is essential for providing health insurance benefits to eligible individuals, primarily those aged 65 and over, as well as younger individuals with disabilities.

In addition to funding Medicare, payroll taxes also support Social Security, which is why option B is the correct choice. This dual funding structure underscores the interconnectedness of these two vital social programs, providing a foundation for their sustainability. Other options presented—such as administrative costs, determining eligibility, or marketing Medicare—do not capture the primary function of payroll taxes within the context of these significant government programs. Thus, the importance of payroll taxes lies in their direct contribution to the financing of essential health services provided by Medicare alongside Social Security benefits.