Phil Phoenix is paid on a monthly basis.For the month of January of the current year,he earned a total of $8,288.FICA tax for Social Security is 6.2% and the FICA tax 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 amount of the employer's payroll taxes expenses for this employee?
A)$56.00
B)$120.18
C)$378.00
D)$513.86
E)$1,068.04

Question

Quizplus · Accepted Answer

Payroll Taxes = FICA-SS Tax + FICA-Medicare Tax + FUTA Tax + SUTA Tax Payroll Taxes = $513.86¹+ $120.18²+ $56.00³ + $378.00⁴ ¹FICA-Social Security $8,288 * 0.062 = $513.68 ²FICA-Medicare $8,288 * 0.0145 = $120.18 ³FUTA $7,000 * 0.008 = $ 56.00 ⁴SUTA $7,000 * 0.054 = $378.00

Phil Phoenix Is Paid on a Monthly Basis