An executive for ABC Corporation earns $170,000 per year.FICA tax for Social Security is 6.2% on the first $127,200 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings.The FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.What is the amount of the employer's payroll taxes expenses for this employee?
A)$10,351.40
B)$13,005.00
C)$23,205.00
D)$10,771.40
E)$10,150.80

Question

Quizplus · Accepted Answer

- FICA Tax: 
    - 6.2% of $127,200 = $7,886.40 
    - 1.45% of $170,000 = $2,465 
    - Total FICA Tax = $10,351.40 
- FUTA Tax: 
    - 0.6% of $7,000 = $42 
- SUTA Tax: 
    - 5.4% of $7,000 = $378 
- Total Payroll Tax Expense = $10,351.40 + $42 + $378 = $10,771.40

An Executive for ABC Corporation Earns $170,000 Per Year