Question

Mr. Zee worked 48 hours during the week ended January 18, 2013. He is paid $10 per hour, and is paid time and a half for all hours over 40 in a week. He had $100 withheld from his pay for federal income taxes, and $20 withheld for health insurance. The combined social security and Medicare tax rate is 7.65%, and the federal and state unemployment tax rates are .8% and 3.8%, respectively. All earnings are taxable. What is the total employer payroll tax expense for Mr. Zee's current paycheck

Answer 1

$63.70

Step-by-step explanation:

The computation of the total employer payroll tax expense is shown below:

But before that we need to determine the gross salary which is shown below:

= 40 hours × $10 + 8 hours × $15

= $400 + $120

= $520

Now the total payroll tax expense is

= Gross salary × (social security and Medicare tax rate + federal tax + state unemployment tax rates)

= $520 × (7.65% + 0.8% + 3.8%)

= $63.70