Mr. Zee worked 48 hours during the week ended January 18, 2013. He is paid $10 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are .8% and 3.8%, respectively. All earnings are taxable. What is the total employer payroll tax expense for Mr. Zee's current paycheck?

Question

Quizplus · Accepted Answer

The employer payroll tax expense includes the employer's share of Social Security and Medicare taxes (7.65% of gross pay) and unemployment taxes (0.8% federal and 3.8% state). Mr. Zee's gross pay is $520 (40 hours at $10 + 8 hours at $15). The total employer payroll tax expense is 7.65% of $520 + 0.8% of $520 + 3.8% of $520 = $63.70.

Mr Zee Worked 48 Hours During the Week Ended January