Chapter 9.A, Problem 3SE

Employer payroll costs (Learning Objective 8) 5-10 min.

Jill Pederson is paid $800 for a 40-hour week and time-and-a-half for hours that exceed 40. Compute the employer’s total expense of employing Jill for the 44 hours that she worked during the second week of June. Use a 7.65% FICA tax rate, a 5.4% SUTA tax rate, and a .6% FUTA tax rate. The state unemployment wage base in the state where Pederson works is $38,000. Assume that Pederson has made $18,200 prior to this pay period. Round amounts to the nearest cent.