An employee earned $4,600 in February working for an employer. Cumulative earnin

Question

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 $118,500 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?

Multiple Choice

$581.90

$110.00

$351.90

$483.90

$230.00

Explanation / Answer

Answer:-

$ 483.90

The amount the employer should record as payroll taxes expenae for the month of February is $ 483.90

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