Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,138. Federal Insurance Contributions Act (FICA) tax Social Security is 6.2% on the first $137,700 of earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,516.27. What is the amount of the employ payroll taxes expense for this employee? (Round your intermediate calculations to two decimal places.) Multiple Choice $124734
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,138. Federal Insurance Contributions Act (FICA) tax Social Security is 6.2% on the first $137,700 of earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,516.27. What is the amount of the employ payroll taxes expense for this employee? (Round your intermediate calculations to two decimal places.) Multiple Choice $124734
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,138. Federal Insurance Contributions Act (FICA) tax for
Social Security is 6.2% on the first $137,700 of earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax for Medicare is 1.45% of all
earnings. The Federal Unemployment Taxes (FUTA) tax rate is 0.6%, and the State Unemployment Taxes (SUTA) tax rate is 5.4%. Both unemployment taxes are
applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,516.27. What is the amount of the employer's
payroll taxes expense for this employee? (Round your intermediate calculations to two decimal places.)
Multiple Choice
$1,247.34
$2,763.61
$2,214.42
$1,119.06
$420.00
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