An employee has gross earnings of $1000 and withholdings of $60 FICA (OASDI and Medicare),and $50 for income taxes (FIT and SIT).The employer pays $60 FICA (OASDI and Medicare),$10 for SUTA,and $5.60 FUTA.What is the employer's total cost of the employee?
A)$915.60
B)$1,085.60
C)$975.60
D)$1,035.60

Question

Quizplus · Accepted Answer

To find the employer's total cost, we need to add up all the costs incurred by the employer, which are:
- $1000 gross earnings
- $60 FICA (OASDI and Medicare) paid by the employer
- $10 for SUTA
- $5.60 for FUTA

So far, the total cost is:
$1000 + $60 + $10 + $5.60 = $1075.60

However, we also need to subtract the amount of withholdings paid by the employee, which are:
- $60 FICA (OASDI and Medicare)
- $50 for income taxes (FIT and SIT)

The total of these withholdings is:
$60 + $50 = $110

So the final calculation for the employer's total cost is:
$1075.60 - $110 = $975.60

Therefore, the correct answer is C.

An Employee Has Gross Earnings of $1000 and Withholdings of $60