Question

Social Security Tax is 6.2%; Medicare Tax is 1.45% and federal and state unemployment compensation taxes total 5.4% (both added together); the federal income tax for the month is $250 and the state income taxes for the month is $40. If employee George Glass earned $2,500 for the current month and he has not reached any maximums for taxes, what are the total employee payroll taxes withheld for the current month?

Answer 1

The total payroll taxes for employee withheld for the current month will be $481.25 .

Step-by-step explanation:

The social security tax and medicare tax will be calculated on the employee ( George glass ) earnings $2500 for the current month.

SOCIAL SECURITY TAX = $2500 X 6.2%

= $155

MEDICARE TAX = $2500 X 1.45%

= $36.25

Here federal unemployment compensation taxes won't be calculated on the employee's current , as these taxes will be paid by the employer.

In the total tax we will include federal income tax and state income taxes, so total payroll taxes would be -

= social security tax + medicare tax + federal income tax + state income tax

= $155 + $36.25 + $250 + $40

= $481.25