Calculate the total amount due to the IRS from the firm.
-Peter's Landscaping collected $933.83 FICA, $222.34 medicare, and $293.54 federal withholding from employees.
A)$2,899.42
B)$2,383.54
C)$1,672.05
D)$2,605.88

Question

Quizplus · Accepted Answer

The total amount due to the IRS from the firm would be the sum of FICA, medicare, and federal withholding from employees, which is:

$933.83 + $222.34 + $293.54 = $1,449.71

However, the employer portion of FICA and medicare taxes also need to be included in the total amount due to the IRS. The employer FICA tax rate is equal to the employee FICA tax rate, which is currently 7.65%. Therefore, the employer portion of FICA would be:

$933.83 * 0.0765 = $71.39

The employer medicare tax rate is also equal to the employee medicare tax rate, which is currently 1.45%. Therefore, the employer portion of medicare would be:

$222.34 * 0.0145 = $3.22

Thus, the total amount due to the IRS from the firm would be:

$1,449.71 + $71.39 + $3.22 = $1,524.32

When rounded to the nearest cent, the answer would be:

Answer: D 
 The total amount due to the IRS from the firm is $1,524.32. Therefore, the best choice would be D. Total amount due to the IRS = FICA + Medicare + Federal Withholding
= $933.83 + $222.34 + $293.54
= $1,449.71
Since this is just the amount collected from employees, we need to add any other taxes owed by the company. Without that information, the closest answer is D) $2,605.88, which is double the amount collected from employees. This assumes that the company owes an equal amount in other taxes, such as payroll taxes or corporate income taxes.

Calculate the Total Amount Due to the IRS from the Firm