Question

Family Flowers employs 17 people, of whom 14 earn gross pay of $660.00 each and 3 earn gross pay of $700.00 each on a weekly basis. What is the employer's share of total Social Security and Medicare taxes for the first quarter of the year? (Social security tax is 6.2% of wages up to $128,400. Medicare tax is 1.45% of all wages.)A. $660.00B. $700.00 C. $850.68D. $11,277.63

Answer 1

The employer's share of total Social Security and Medicare taxes for the first quarter of the year is $867.51.

Step-by-step explanation:

To calculate the employer's share of total Social Security and Medicare taxes, we first need to calculate the total gross pay for all employees. For the 14 employees earning $660.00 each, the total gross pay is $660.00 * 14 = $9,240.00. For the 3 employees earning $700.00 each, the total gross pay is $700.00 * 3 = $2,100.00. The total gross pay for all employees is $9,240.00 + $2,100.00 = $11,340.00.

The employer's share of Social Security tax is 6.2% of the total gross pay, which is 0.062 * $11,340.00 = $703.08. The employer's share of Medicare tax is 1.45% of the total gross pay, which is 0.0145 * $11,340.00 = $164.43. Therefore, the employer's share of total Social Security and Medicare taxes for the first quarter of the year is $703.08 + $164.43 = $867.51.