An employee earns $5,500 per month working for an employer. The Federal InsuranceContributions Act (FICA) tax rate for Social Security is 6.2% of the first $137,700 of earnings eachcalendar year and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% ofall earnings. The current Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the StateUnemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first$7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. Theemployee has voluntary deductions for health insurance of $150 and contributes $75 to aretirement plan each month. What is the amount the employer should record as payroll taxes?

Total gross pay to employee = Normal wages + Overtime wages After calculating gross wages, there are…

Answered: An employee earns $5,500 pe

Business

Accounting

An employee earns $5,500 pe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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