An employee earned $61,700 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee earnings per 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 of total unemployment taxes the employee must pay? Multiple Choice $378.00 $0.00 $101.50 $434.00 $56.00
An employee earned $61,700 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee earnings per 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 of total unemployment taxes the employee must pay? Multiple Choice $378.00 $0.00 $101.50 $434.00 $56.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![An employee earned $61,700 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee
earnings per 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 of total unemployment taxes the employee must pay?
Multiple Choice
$378.00
$0.00
$101.50
O 5434,00
$56.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6dc160e3-dc15-4147-93b6-7b41314c664a%2F31b2f091-2d22-4950-8d36-d3760f7ddec2%2F2u7qa88_processed.png&w=3840&q=75)
Transcribed Image Text:An employee earned $61,700 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of employee
earnings per 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 of total unemployment taxes the employee must pay?
Multiple Choice
$378.00
$0.00
$101.50
O 5434,00
$56.00
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