Portia Grant is an employee who is paid monthly.For the month of January of the current year,she earned a total of $8,260.The FICA tax for social security is 6.2% of the first $127,200 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay.The amount of federal income tax withheld from her earnings was $1,325.17.What is the total amount of taxes withheld from the Portia's earnings? (Round your intermediate calculations to two decimal places.)
A)$3,097.17
B)$2,443.21
C)$1,957.06
D)$1,722.00
E)$1,495.36

Question

Quizplus · Accepted Answer

The total taxes withheld include Social Security ($8,260 * 6.2% = $512.12), Medicare ($8,260 * 1.45% = $119.77), FUTA ($7,000 * 0.6% = $42.00), SUTA ($7,000 * 5.4% = $378.00), and federal income tax ($1,325.17). Adding these gives $512.12 + $119.77 + $42.00 + $378.00 + $1,325.17 = $1,957.06.

Portia Grant Is an Employee Who Is Paid Monthly