During the first week of January, Sam Jones earned $200. Assume that FICA taxes are 7.65 percent of wages up to $50,000, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Sam has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively.
Using the information above, what is the employer's payroll tax expense for the week, assuming that Sam Jones is the only employee?

Question

Quizplus · Accepted Answer

The employer's payroll tax expense includes FICA taxes (7.65% of $200), state unemployment tax (5.0% of $200), and federal unemployment tax (0.8% of $200). Calculating these: FICA = $15.30, state unemployment = $10.00, and federal unemployment = $1.60. Total = $26.90.

During the First Week of January, Sam Jones Earned $200