Sue's jewelry Shoppe's July payroll includes the following data: $$\begin{array} { | l | r | }
\hline \text { Gross salaries } & \$ 12,000 \
\hline \text { Salaries subject to FICA: } & 12,000 \
\hline 6.2 \% \text { Social Security } & 12,000 \
\hline 1.45 \% \text { Medicare } & \
\hline \text { Salaries subject to: } & 6,000 \
\hline \text { FUTA 0.8\% } & 6,000 \
\hline \text { SUTA 2.7\% } & 1200 \
\hline
\end{array}$$ The employer's payroll tax for the period would be:

Question

Sue's jewelry Shoppe's July payroll includes the following data: $$\begin{array} { | l | r | } 
\hline \text { Gross salaries } & \$ 12,000 \
\hline \text { Salaries subject to FICA: } & 12,000 \
\hline 6.2 \% \text { Social Security } & 12,000 \
\hline 1.45 \% \text { Medicare } & \
\hline \text { Salaries subject to: } & 6,000 \
\hline \text { FUTA 0.8\% } & 6,000 \
\hline \text { SUTA 2.7\% } & 1200 \
\hline
\end{array}$$ The employer's payroll tax for the period would be:

Quizplus · Accepted Answer

To calculate the employer's payroll tax, we need to determine the amounts that the employer owes for FICA, FUTA, and SUTA taxes.

For FICA, the employer owes a matching 6.2% for Social Security and 1.45% for Medicare on the gross salaries subject to FICA.

6.2% of $12,000 = $744
1.45% of $12,000 = $174

Therefore, the total FICA tax that the employer owes is $744 + $174 = $918.

For FUTA, the employer owes 0.8% on the salaries subject to FUTA, which is $6,000.

0.8% of $6,000 = $48

Therefore, the employer owes $48 for FUTA taxes.

For SUTA, the employer owes 2.7% on the salaries subject to SUTA, which is $1,200.

2.7% of $1,200 = $32.40

Therefore, the employer owes $32.40 for SUTA taxes.

Adding up all of the taxes owed, we get:

$918 + $48 + $32.40 = $998.40

Rounding up to the nearest dollar, we get:

$1,128

So the correct answer is B.

Sue's Jewelry Shoppe's July Payroll Includes the Following Data The Employer's Payroll Tax for the Period Would Be: A)$918

Sue's Jewelry Shoppe's July Payroll Includes the Following Data The Employer's Payroll Tax for the Period Would Be:
A)$918