Question

​Jason's gross pay for the week is $ 1,000. His yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 6​% and that​ Jason's year-to-date pay has not yet exceeded the $ 7,000 cap. His yearly pay is under the limit for OASDI. What is the total amount of payroll taxes that his employer must record as payroll tax​ expenses? (Do not round your intermediate calculations. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)

Answer 1

Total payroll taxes 213

Step-by-step explanation:

the employeer will have to record the taxes on the wages plus the taxes on his behalf

1,000 x 6.2 = 62

1,000 x 1.45 = 14.5

Total 76.5 for the employee

Then the employer must pay the same amount of taxes.

employer taxes 76.5

Total for OASDI and Medicare: 153

Then FUTA&SUTA 6% of 1000 60

Total payroll taxes 213