Question

assume a weekly payroll of $10,000 entirely subject to f.i.c.a. and medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,320 and union dues of $88 deducted. what would be the total fica and medicare taxes payable?

Answer 1

The total FICA and Medicare taxes payable are $765 for the employer and $765 for the employee, making the combined total $1,530 for a weekly payroll of $10,000.

Step-by-step explanation:

To calculate the total FICA and Medicare taxes payable, we need to consider both the employee and employer contributions. For Social Security, the rate is 12.4% of the gross payroll, split evenly between the employer and employee, which amounts to 6.2% each. For Medicare, the rate is 2.9%, also split evenly, resulting in 1.45% each. Since the weekly payroll is $10,000, we can calculate:

For Social Security: 6.2% of $10,000 = $620 (employee's contribution)
For Medicare: 1.45% of $10,000 = $145 (employee's contribution)

The total FICA and Medicare taxes payable by the employer will equal the employee's contribution because they are a matching amount.

Therefore, the total FICA and Medicare taxes payable by the employer will be $620 (Social Security) + $145 (Medicare) = $765.

And the combined total for both employer and employee will be $765 (employer's portion) + $765 (employee's portion) = $1,530.