An employee earns $6,250 per month working for an employer. The FICA tax rate fo

Question

An employee earns $6,250 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $212 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $180 and contributes $90 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?

Explanation / Answer

Social Security 387.5 =6250*6.2% Medicare 90.63 =6250*1.45% FUTA tax 50 =6250*0.8% SUTA tax 337.5 =6250*5.4% Payroll taxes expense 865.63

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