Triston Vale is paid on a monthly basis.For the month of January of the current year,he earned a total of $5,210.FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.The 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.The amount of Federal Income Tax withheld from his earnings was $885.70.What is the amount of the employer's payroll taxes expenses for this employee?
A)$1,284.27
B)$312.60
C)$398.57
D)$711.17
E)$1,596.87

Question

Quizplus · Accepted Answer

1. Calculate FICA tax for Social Security: 
$5,210 x 6.2% = $322.02

2. Calculate FICA tax for Medicare: 
$5,210 x 1.45% = $75.45

3. Calculate FUTA tax: 
$7,000 x 0.6% = $42

4. Calculate SUTA tax: 
$7,000 x 5.4% = $378

5. Add up all taxes: 
$322.02 + $75.45 + $42 + $378 = $817.47

6. Subtract Federal Income Tax withheld: 
$817.47 - $885.70 = -$68.23

Since the result is negative, this means that the employer does not owe any additional taxes for this employee. Therefore, the amount of the employer's payroll taxes expenses for this employee is $0. Option D is the closest answer, but still involves an incorrect calculation.

Triston Vale Is Paid on a Monthly Basis