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 $118,500 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? (Round your intermediate calculations to two decimal places.)

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Quizplus · Accepted Answer

Payroll Taxes = FICA-SS Tax + FICA-Medicare Tax + FUTA Tax + SUTA Tax Payroll Taxes = $513.86¹ + $120.18² + $42.00³ + $378.00⁴ = $1,054.04 ¹FICA-Social Security $8,288 * 0.062 = $513.86 ²FICA-Medicare $8,288 * 0.0145 = $120.18 ³FUTA $7,000 * 0.006 = $42.00 ⁴SUTA $7,000 * 0.054 = $378.00

Gary Marks Is Paid on a Monthly Basis