Gary Marks is paid on a monthly basis.For the month of January of the current year,he earned a total of $8,288.FICA tax for Social Security is 6.2% on the first $128,400 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings.The FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The amount of Federal Income Tax withheld from his earnings was $1,375.17.What is the amount of the employer's payroll taxes expenses for this employee? $\underline{\text{(Round your intermediate calculations to two decimal places.)}}$
A)$2,009.21
B)$1,131.31
C)$2,506.48
D)$420.00
E)$1,054.04

Question

Quizplus · Accepted Answer

The employer's payroll taxes expenses include the employer's portion of FICA taxes (Social Security and Medicare) and the unemployment taxes (FUTA and SUTA). Since Gary earned $8,288 in January, we calculate each component:- Social Security tax (6.2% of $8,288) = $513.86- Medicare tax (1.45% of $8,288) = $120.18- FUTA tax (0.6% of $7,000, since it's capped) = $42.00- SUTA tax (5.4% of $7,000, since it's capped) = $378.00Adding these together gives the employer's payroll tax expense: $513.86 + $120.18 + $42.00 + $378.00 = $1,054.04.

Gary Marks Is Paid on a Monthly Basis (Round your intermediate calculations to two decimal places.)‾\underline{\text{(Round your intermediate calculations to two decimal places.)}}(Round your intermediate calculations to two decimal places.)​

Gary Marks Is Paid on a Monthly Basis $\underline{\text{(Round your intermediate calculations to two decimal places.)}}$