Alfred Spindle earned gross wages of $1,850 for the week ended January 18, 2019. His gross wages year to date, prior to his January 18 paycheck, were $3,700. He had $96 withheld from his pay for federal income taxes, and $56 for health insurance. Social Security tax is 6.2% and Medicare tax is 1.45%; the federal unemployment tax rate is 0.6% and the state unemployment tax rate is 4.2%, both on a maximum of $7,000 per each employee's annual earnings. What is the total employer payroll tax expense associated with Alfred's January 18, 2019, paycheck?

Question

Quizplus · Accepted Answer

The employer payroll tax expense includes Social Security (6.2% of $1,850), Medicare (1.45% of $1,850), federal unemployment (0.6% of $1,850), and state unemployment (4.2% of $1,850) taxes. Calculating these: Social Security = $114.70, Medicare = $26.83, FUTA = $11.10, SUTA = $77.70. Total = $230.33.

Alfred Spindle Earned Gross Wages of $1,850 for the Week