Mr.Zee worked 48 hours during the week ended January 18,2016.He is paid $10 per hour,and is paid time and a half for all hours over 40 in a week.He had $100 withheld from his pay for federal income taxes,and $20 withheld for health insurance.The combined social security and Medicare tax rate is 7.65%,and the federal and state unemployment tax rates are .6% and 3.8%,respectively.All earnings are taxable.What is the total employer payroll tax expense for Mr.Zee's current paycheck.

Question

Quizplus · Accepted Answer

Explanation:Gross pay: 48 hours x $10 per hour = $480Overtime pay: 8 hours x $15 per hour = $120Total taxable earnings: $480 + $120 = $600Federal income tax withheld: $100Health insurance withheld: $20Social security tax: $600 x 7.65% = $45.90Medicare tax: $600 x 1.45% = $8.70Federal unemployment tax: $600 x 0.6% = $3.60State unemployment tax: $600 x 3.8% = $22.80Total employer payroll tax expense: $45.90 + $8.70 + $3.60 + $22.80 = $62.66

MrZee Worked 48 Hours During the Week Ended January 18,2016