Question

Required information Suppose Jim worked 67 hours during this payroll period and is paid $13.00 per hour. Assume FICA is 6.2%, Medicare is 1.45% and withholding tax is 10%. Calculate Jim's employer's payroll tax expense for the period. 2 Payroll Exp

Answer 1

Laower A FICA Melicone and with holding tox FICA : Federal Insurance Contribylian AcE_Melicone FICA consists of two taxes namely 6.2%. Social Secunty Tax and 1.45% Medicare tx. There are contrityled by the employee from his parell received the employed It is calleplatel of the employer's belyl payroll It is compulsory Withholding Tax withhelling Tyx is the tax withheld by the employer from the wages of the employee. It is paid directly to the Roverment by the employer. The employce will get set of from the income tax liability from the with cholling tax It is just like advance txx given to the government As discussed above, withholding tax is a linke tax it will set off against the income tax liabilility byt FICA and medicare are compulsory to pay. Therefore Payroll tax expense inclydes fica and the Medicare

Calculation_of_Payroll_TAX_Expenste Payroll Tax Expense = FICA Tax & merisque Tax · Gross Payroll x percentage of FICA and medfeare (67 heus x $12) * FICA 77 percentage 1 (67 hours X $13) X Medjeque Percentage : $ [871 x(6.2% of 271) 1871 X igs % of 875 $ $ 54.002 + 66.6315 12.6295 T 66:64 L . Poroll Tax Expense of Jing is $66.64,