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Homework answers / question archive / An employee earned $4,600 in February working for an employer
An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% of the first $127,200 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount the employer should record as payroll taxes expense for the month of February?
$581.90
$110.00
$351.90
$483.90
$230.00
Social Security tax285.20=4600*6.2%Medicare tax66.70=4600*1.45%FUTA tax13.20=(7000-4800)*0.6%SUTA tax118.80=(7000-4800)*5.4%Payroll taxes expense483.90$483.90 is correct option
