Mr. Zee worked 48 hours during the week ended January 18, 2019. He is paid $12 per hour, and is paid time-and-a-half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are 0.6% and 3.8%, respectively. All earnings are taxable. What is the total employer payroll tax expense for Mr. Zee's current paycheck?

Question

Quizplus · Accepted Answer

First, we need to calculate Mr. Zee's gross pay. He worked 48 hours, so we need to calculate his regular pay for 40 hours plus his overtime pay for the remaining 8 hours.

Regular pay = 40 hours x $12 per hour = $480 
Overtime pay = 8 hours x $18 per hour ($12 x 1.5) = $144 
Gross pay = Regular pay + Overtime pay = $480 + $144 = $624

Now, we can calculate the total employer payroll tax expense:

Social Security and Medicare taxes = $624 x 7.65% = $47.74 
Federal unemployment tax = $624 x 0.6% = $3.74 
State unemployment tax = $624 x 3.8% = $23.71

Total employer payroll tax expense = Social Security and Medicare taxes + Federal unemployment tax + State unemployment tax = $47.74 + $3.74 + $23.71 = $75.19

Therefore, the answer is B.

Mr Zee Worked 48 Hours During the Week Ended January