Question

Bobby Darling is the only employee of Atlantic Records, Inc. During the first week of January, Darling earned $2,600.00 and had federal and state income tax withholdings of $130.00 and $48.75, respectively. FICA taxes are 7.65 % on earnings up to $117,000. State and federal unemployment taxes for the period are $162.50 and $26.00, respectively. What is the employer's payroll tax expense for the week?

Answer 1

$387.40

Step-by-step explanation:

FICA Taxes ($2,600 x 7.65%) $198.90

State Unemployment Taxes $162.50

Federal Unemployment Tax $26.00

Employer's payroll tax expense for the week $387.40

Social Security and Medicare are combined called as FICA taxes and employer made the same contribution as of employee.

State and Federal Unemployment Tax is solely for employer only.

The rest are employee related taxes.