An employee has gross earnings of $1,200 and withholdings of $91.80 for Social Security and Medicare taxes and $120 for income taxes.The employer pays $91.80 for Social Security and Medicare taxes,$9.60 for FUTA,and $64.80 for SUTA.The total cost of this employee to the employer is
A)$1,301.40
B)$1,200.00
C)$1,366.20
D)$1,578.00

Question

Quizplus · Accepted Answer

Employee's total withholdings = $91.80 (Social Security and Medicare taxes) + $120 (income taxes) = $211.80
Employer's total cost = Employee's total earnings + Employer's contributions towards taxes
= $1,200 + $91.80 (Social Security and Medicare taxes) + $9.60 (FUTA) + $64.80 (SUTA)
= $1,366.20
Therefore, the total cost of this employee to the employer is $1,366.20, which is option C.

An Employee Has Gross Earnings of $1,200 and Withholdings of $91.80