An employee has gross earnings of $600 and withholdings of $45.90 for social security and Medicare taxes and $60 for income taxes. The employer pays $45.90 for social security and Medicare taxes and $4.80 for FUTA. The total cost of this employee to the employer is
A) $650.70.
B) $600.00.
C) $696.60.
D) $604.80.

Question

Quizplus · Accepted Answer

The total cost of the employee to the employer is the gross earnings plus the employer's share of social security and Medicare taxes and FUTA. The employer's share of social security and Medicare taxes is $45.90, and the employer's share of FUTA is $4.80. Therefore, the total cost of the employee to the employer is $600 + $45.90 + $4.80 = $650.70.

An Employee Has Gross Earnings of $600 and Withholdings of $45.90