Alfred Spindle earned gross wages of $1,620 for the week ended June 21,2016.His gross wages year to date,prior to his June 21 paycheck,were $38,556.He had $88 withheld from his pay for federal income taxes,and $16 for health insurance.Social Security and is 6.2% and Medicare tax is 1.45%;the federal unemployment tax rate is .6% and the state unemployment tax rate is 4.2%,both on a maximum of $7,000 per each employee's annual earnings.What is the total employer payroll tax expense associated with Alfred's June 21,2016,paycheck?

Question

Quizplus · Accepted Answer

- Social Security tax: 6.2% of $1,620 = $100.44 (maximum amount of taxable earnings for SS tax = $118,500)
- Medicare tax: 1.45% of $1,620 = $23.49
- Federal Unemployment tax: .6% of $1,620 = $9.72 (maximum taxable earnings for FUTA tax = $7,000)
- State Unemployment tax: 4.2% of $1,620 = $68.04 (maximum taxable earnings for SUTA tax = $7,000)
- Total employer payroll tax expense = $100.44 + $23.49 + $9.72 + $68.04 = $201.69
Therefore, the best answer is choice letter B, which is the closest value to $201.69.

Alfred Spindle Earned Gross Wages of $1,620 for the Week