Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added together); the federal income tax for the month is $250 and the state income taxes for the month is $40. If employee George Glass earned $2,500 for the current month and he has not reached any maximums for taxes, what are the total employee payroll taxes withheld for the current month?

Question

Quizplus · Accepted Answer

To calculate the total employee payroll taxes withheld for George Glass for the current month, we need to calculate each tax contribution individually and then add them up:

Social Security tax: $2,500 * 6.2% = $155.00
Medicare tax: $2,500 * 1.45% = $36.25
Federal and state unemployment compensation taxes: $2,500 * 5.4% = $135.00
Federal income tax: $250.00
State income tax: $40.00

Total employee payroll taxes withheld = $155.00 + $36.25 + $135.00 + $250.00 + $40.00 = $556.25

Therefore, the best choice is C.

Social Security Tax Is 6