Sue earned $56,000 working for an employer in the current year. The current rate for Social Security is 6.2% payable on earnings up to $137,700 maximum per year and the Medicare rate is 1.45% with no cap. The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay. A)The employer's total FICA payroll tax expense for this employee is: *Remember what FICA taxes are! B) Using the above information for Sue: When the employer remits the total payment to the Medicare Administration, how much will the payment be?
Sue earned $56,000 working for an employer in the current year. The current rate for Social Security is 6.2% payable on earnings up to $137,700 maximum per year and the Medicare rate is 1.45% with no cap. The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay. A)The employer's total FICA payroll tax expense for this employee is: *Remember what FICA taxes are! B) Using the above information for Sue: When the employer remits the total payment to the Medicare Administration, how much will the payment be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sue earned $56,000 working for an employer in the current year. The current rate for Social Security is 6.2% payable on earnings up to $137,700 maximum per year and the Medicare rate is 1.45% with no cap.
The FUTA tax rate of .6% is applied on ALL Earnings. The SUTA tax rate of 5.4% is applied to the first $6,000 of an employee's pay.
A)The employer's total FICA payroll tax expense for this employee is: *Remember what FICA taxes are!
B) Using the above information for Sue: When the employer remits the total payment to the Medicare Administration, how much will the payment be?
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