Question

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.

Salaries	$142,828
Federal income taxes to be withheld	5,517
Federal unemployment tax rate	0.60%
State unemployment tax rate (after FUTA deduction)	3.3%
Social Security tax rate	6.20%
Medicare tax rate	1.45%

                                                                                                                         

What is the total payroll tax expense related to the employee’s paychecks?

Answer 1

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Please find below the answer
Statement showing Computations
Particulars	Amount
Payroll Tax expense:
SS Tax pay = 142,828*6.20%	8,855.34
Medicare tax pay = 142,828*1.45%	2,071.01
FUTA = 142,828*.60%	856.97
SUTA = 142,828*3.30%	4,713.32
Total Payroll Tax expense	16,496.63