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 1 year ago

Next > < Previous

Related Solutions

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

An employee earned $155,000 working for an employer in the current year. The current rate for...

An employee earned $155,000 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $127,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings. The employee’s total FICA payroll tax is: A.$11,857.50. B.$9,730.80. C.$10,133.90. D.$2,247.50. E.$0, since the FICA tax is paid entirely by the employer.

An employee earned $37,000 during the year working for an employer when the maximum limit for...

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee’s annual FICA taxes amount is

Employee Cumulative Pay Employee Cumulative Pay Ken S 5000 Kyle 120000 Tim V 63200 Lori 122500...

Employee Cumulative Pay Employee Cumulative Pay Ken S 5000 Kyle 120000 Tim V 63200 Lori 122500 Steve 90000 Kitty 39900 Michael 149500 John 7000 Erin 109900 Mest company has 9 employess. EICA social secutiry taxes are 6.2 percent of the first 188500 paid to each employee and FICA medicare tazes are 1.45 percent of gross pay. FUTA tazes are 0.6 percent and SUTA tazes are 5.4 percent of the first 7000 paid to each empoloyee cumulative pay for the current...

Tom James has cumulative earnings of $6,825 and earned $750 during the current payroll period. The...

Tom James has cumulative earnings of $6,825 and earned $750 during the current payroll period. The FUTA tax is 0.6%, with a ceiling of $7,000. What is the employers federal unemployment tax liability for the current payroll: a.$175.00 b.$10.50 c.$1.05 d.$105.00

Name hours worked pay rate earnings at end of the previous week filing status numbres of...

Name hours worked pay rate earnings at end of the previous week filing status numbres of witholdings biggs, al 40 $11.65 $21,536.00 single 2 cool,ray 40 $11.50 $21,988.00 single 1 dell,don 40 $11.95 $21,160.00 married 2 evans, pedro 49 $34.00 $127,280.00 married 4 frey, belle 22 $10.50 $6,096.00 married 2 grayson, nick 40 $11.00 $21,040.00 married 1 roberts, john 45 $14.25 $25,690.00 single 0 wayne,david 18 $10.75 $6,855.00 married 2 Arcade Mania has the following payroll information for the week...

(IN C++)A special tax regulation allows an employee to set aside earnings to pay for qualified...

(IN C++)A special tax regulation allows an employee to set aside earnings to pay for qualified medical expenses and other items. At LocalPharm, a privately owned pharmacy, codes are assigned to each product If the code starts with an 'C', 'D', or 'H', the item is eligible for reimbursement. Otherwise, the product is not. Write a program that inputs the records contained within a file listing LocalPharm’s inventory. Each record contains an inventory code, an item description, and a...

Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined).

2. Problems and Applications Q2Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table:On Taxable Income...The Tax Rate Is...From $0 to $9,07510.0%From $9,076 to $36,90015.0%From $36,901 to $89,35025.0%From $89,351 to $186,35028.0%From $186,351 to $405,10033.0%From $405,101 to $406,75035.0%From $406,751 and above39.6%Complete the...

Dee is paid $2,345 on November 8, 20--. Dee had cumulative gross earnings, including overtime pay, of $131,600 prior to this pay.Round your answers to the nearest cent.

Problem InformationUse the following tax rates, ceiling and maximum taxes:Employee and Employer OASDI:6.20%$132,900$8,239.80Employee* and Employer HI:1.45%No limitNo maximumSelf-employed OASDI:12.4%$132,900$16,479.60Self-employed HI:2.9%No limitNo maximum*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half...

36) Eric, an employee of sam’s club, earned $ 120000 in 2016. The taxable wage base in 2016 is $ 118500 How much FICA tax should Eric pay in 2016?

36) Eric, an employee of sam’s club, earned $ 120000 in 2016. The taxable wage base in 2016 is $ 118500 How much FICA tax should Eric pay in 2016? Please answer the following two questions ? A) $9180 b) $9065.25 c) $9087 d) $8789 37) How much federal unemployment tax should been on behalf of Eric in 2016 ? A) $7440 B) $434 C) $7200 D) $420

Subjects