Jerry Little's gross wages as of October 31 were $110,000.He earned gross wages of $4,000 for the pay period ended November 15,2016.Deducted from his paycheck this period,were federal income taxes of $400,state income taxes of $150,social security of 6.2% on the first $113,700 and Medicare tax of 1.45%.State Unemployment Tax is 4%,and Federal Unemployment tax is .6% on the first $7,000 of annual earnings.Calculate the employer payroll income taxes associated with Jerry's November 15 paycheck.

Question

Quizplus · Accepted Answer

- Social Security tax (6.2% on first $113,700): $4,000 x 6.2% = $248.00
- Medicare tax (1.45% on all earnings): $4,000 x 1.45% = $58.00
- State Unemployment Tax (4% on first $7,000): $7,000 x 4% = $280.00
- Federal Unemployment Tax (.6% on first $7,000): $7,000 x .6% = $42.00

Total employer payroll taxes: $248.00 + $58.00 + $280.00 + $42.00 = $628.00

Therefore, the best choice is D. ($287.40 is incorrect, as it appears to be the sum of only the Social Security and Medicare taxes.)

Jerry Little's Gross Wages as of October 31 Were $110,000