Phil Phoenix is paid on a monthly basis. For the month of January of the current

Question

Phil Phoenix is paid on a monthly basis. For the month of January of
the current year, he earned a total of $8,438. FICA tax for Social
Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax
rate is 0.8%, and the 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 $1,400.07. What is
the amount of the employer's monthly payroll tax expenses for this
employee? (Round your intermediate calculations and final answer to
two decimal places.)

Explanation / Answer

8438 * .062 (Social Security) + 8288 * .0145 (Medicare) + 7000 * .008 (FUTA) + 7000 * .054 (SUTA) = 1077.32

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