Question
In: Accounting
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 agoRelated Solutions
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