Beau Brentley earned $60,000 in 2011 from his job at Bridgestone Tires.He had 15% of his gross pay withheld for federal income taxes,6.2% withheld for FICA Social Security taxes,and 1.45% withheld for Medicare taxes.What amount will Bridgestone Tires report as payroll tax expense when it pays these taxes?

Question

Quizplus · Accepted Answer

The payroll tax expense for Bridgestone Tires includes only the employer's portion of FICA Social Security taxes (6.2%) and Medicare taxes (1.45%), which are matched by the employer. Federal income taxes withheld from the employee's gross pay are not an employer expense. Therefore, the calculation is: $60,000 * (6.2% + 1.45%) = $60,000 * 7.65% = $4,590.

Beau Brentley Earned $60,000 in 2011 from His Job at Bridgestone