Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is .8%. What is the total amount of employer payroll taxes for the month of July for Hunter Furniture Company? (Assume all earnings are subject to employer payroll taxes.)

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Quizplus · Accepted Answer

Employer payroll taxes include social security, Medicare, state unemployment, and federal unemployment taxes. Social security tax is 6.2% of $30,000/12 = $155.00. Medicare tax is 1.45% of $30,000/12 = $36.25. State unemployment tax is 4% of $30,000/12 = $100.00. Federal unemployment tax is 0.8% of $30,000/12 = $20.00. Total employer payroll taxes = $155.00 + $36.25 + $100.00 + $20.00 = $311.25.

Rick O'Shea, the Only Employee of Hunter Furniture Company, Makes