Portia Grant is an employee who is paid monthly. For the month of January of the
ID: 2500788 • Letter: P
Question
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,260. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,325.17. What is the total amount of taxes withheld from the Portia's earnings?
A)$3,097.17
B)$2,443.21
C)$1,957.06
D)$1,722.00
E)$1,495.36
Explanation / Answer
The Total earning of Portia Grant for the month of January = $ 8,260
FICA (Federal Insurance Contributions Act) Social Security Tax @ 6.2 % = 6.2% * 8,260 = $ 512.12
FICA Medicare Tax @ 1.45 % = $ 119.77
FUTA (Federal Unemployment tax) & SUTA (State Unemployment Tax) taxes are paid by the employer and are not withheld from the employee's earning. Thus, they such taxes are neither calculated nor included in the withholding's from Portia's earnings.
Federal Income Tax Withheld = $ 1,325.17
Therefore, Total amount of taxes withheld from Portia's earnings = $ 512.12 + $ 119.77 + $ 1325.17 = $ 1,957.06