Ocean's Auction House's payroll for April includes the following data: $$\begin{array} { | l | r | }
\hline \text { Gross salaries } & \$ 20,000 \
\hline \text { Salaries subject to FICA: } & \
\hline 6.2 \% \text { Social Security } & 17,500 \
\hline 1.45 \% \text { Medicare } &20,000 \
\hline \text { Salaries subject to: } & \
\hline \text { 0.8\% FUTA } & 1,000 \
\hline \text {2.7\% SUTA } & 1,000 \
\hline
\end{array}$$ The employer's payroll tax for the period would be:

Question

Ocean's Auction House's payroll for April includes the following data: $$\begin{array} { | l | r | } 
\hline \text { Gross salaries } & \$ 20,000 \
\hline \text { Salaries subject to FICA: } & \
\hline 6.2 \% \text { Social Security } & 17,500 \
\hline 1.45 \% \text { Medicare } &20,000 \
\hline \text { Salaries subject to: } &  \
\hline \text { 0.8\% FUTA } & 1,000 \
\hline \text {2.7\%  SUTA } & 1,000 \
\hline
\end{array}$$ The employer's payroll tax for the period would be:

Quizplus · Accepted Answer

The employer's payroll tax for the period includes the employer's portion of FICA (Social Security and Medicare), FUTA, and SUTA taxes. To calculate each:- Social Security tax = 6.2% of $17,500 = $1,085- Medicare tax = 1.45% of $20,000 = $290- FUTA tax = 0.8% of $1,000 = $8- SUTA tax = 2.7% of $1,000 = $27Adding these together: $1,085 + $290 + $8 + $27 = $1,410. The correct calculation should be $1,410, but since this option is not available and the closest provided option is $1,403, it appears there was a slight miscalculation in the original options provided.

Ocean's Auction House's Payroll for April Includes the Following Data