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An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay...

An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% of the first $127,200 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount the employer should record as payroll taxes expense for the month of February?

$581.90

$110.00

$351.90

$483.90

$230.00

Solutions

Expert Solution

Social Security tax 285.20 =4600*6.2%
Medicare tax 66.70 =4600*1.45%
FUTA tax 13.20 =(7000-4800)*0.6%
SUTA tax 118.80 =(7000-4800)*5.4%
Payroll taxes expense 483.90
$483.90 is correct option

ekkarill92 answered 2 years ago
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