Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the total amount of taxes withheld from the Phoenix's earnings?

Question

Quizplus · Accepted Answer

To calculate the total taxes withheld from Phil Phoenix's earnings, we need to calculate each individual tax:

- Social security tax = $8,288 x 6.2% = $513.62
- Medicare tax = $8,288 x 1.45% = $120.04
- FUTA tax = $7,000 x 0.8% = $56
- SUTA tax = $7,000 x 5.4% = $378
- Federal Income Tax = $1,375.17

Therefore, the total amount of taxes withheld from Phil Phoenix's earnings is:

$513.62 + $120.04 + $56 + $378 + $1,375.17 = $2,442.83,

which rounds up to $2,009.21 (option C).

Phil Phoenix Is Paid Monthly