During the first week of February,Gabe Hopen earned $300.Assume that FICA taxes are 7.65 percent of wages up to $106,800,state unemployment tax is 5.0 percent of wages up to $13,000,and federal unemployment tax is 0.8 percent of wages up to $13,000.Assume that Gabe has voluntary withholdings of $10 (in addition to taxes)and that federal and state income tax withholdings are $18 and $6,respectively.
-Using the information above,what is the employer's payroll tax expense for the week,assuming that Gabe Hopen is the only employee?

Question

Quizplus · Accepted Answer

1. Calculate FICA taxes: 
    - $300 * 7.65% = $22.95

2. Calculate state unemployment tax: 
    - $300 * 5% = $15 (since $13,000 > $300)

3. Calculate federal unemployment tax: 
    - $300 * 0.8% = $2.40 (since $13,000 > $300)

4. Add up all taxes: 
    - $22.95 + $15 + $2.40 + $18 + $6 + $10 = $74.35

5. Calculate employer's payroll tax expense: 
    - $74.35 + $300 = $374.35 
    - Divide by 1 to get the answer for one employee: 
    - $374.35 / 1 = $374.35

Therefore, the employer's payroll tax expense for the week, assuming that Gabe Hopen is the only employee, is $40.35.

During the First Week of February,Gabe Hopen Earned $300