This one through me for a ride. I have no clue how to do this. I must be missing
ID: 2442816 • Letter: T
Question
This one through me for a ride. I have no clue how to do this. I must be missing a step because doing general common knowledge calculations I do not get any of these answers. What am I supposed to use and not sue to get the answer?
An employee has gross earnings of $600 and withholding's of $45.90 for social security and Medicare taxes and $60 for income taxes. The employer pays $45.90 for social security and Medicare taxes and $4.80 for FUTA. The total cost of this employee to the employer is
a. $650.70.
b. $600.00.
c. $696.60.
d. $604.80.
ANSWER:
Explanation / Answer
The answer is A
social security and Medicare taxes are withheld by the employer; at the same time the employer must match these. Income taxes withheld need not be matched by the employer. FUTA is payable only by the employer. Total cost of this employee to the employer is = $600 + $45.90 + $4.80 = $650.70
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